In 2020, Binance shut off access to all accounts based in the United States due to pressure from regulators. Unfortunately, this move caused thousands of Americans to lose access to their Binance accounts, and by extension, their cryptocurrency holdings.
In this guide, we’ll outline what actions you can take now if you’ve lost access to your Binance account and break down how you can report this lost cryptocurrency on your tax return.
Why did Binance shut down in the United States?
Binance was banned in the United States because it did not comply with U.S. laws and regulations. Exchanges that trade virtual currency derivatives are required to register with the CFTC, which Binance did not do.
, Binance is still being investigated for circumventing these regulations. According to Bloomberg Can I still open a Binance account in the United States?
While Binance.com is no longer operatingallowed to operate in the United States, Binance.US can still be used by Americans. The exchange has a similar user interface, but offers fewer cryptocurrencies and is compliant with U.S. regulations.
How do I regain access to my Binance account?
At this point, it’s difficult to regain access to an American-based Binance.com account, which means some investors have permanently lost their assets and their transaction history associated with their accounts.
Unfortunately, signing up for a
account does not give users access to assets that were held in a Binance.com account. Binance.US Can I claim my lost Binance assets as a capital loss?
Unfortunately, as we detailed in our
, no clear guidance exists from the IRS on how to report assets that are lost due to an exchange shutdown. Some investors choose to report this as a non-deductible casualty loss, while others choose the more aggressive approach of reporting it as an investment loss. guide to reporting stolen or lost cryptocurrency What do I do if I was transferred some of my assets into and out of my Binance account in the past?
Some investors run into trouble if they transferred assets into and out of Binance and other accounts they’ve lost access to. Consider the following scenario.
If Roger is locked out of his account, it will be impossible for him to gain access to his transaction history, which he needs to accurately report his taxes.
If you find yourself in this situation, reach out to Binance’s support team for a copy of your transaction history. If this fails, you should reach out to a
tax professional who can help you make reasonable estimates of your trading history on your lost account. Simplify with crypto taxes with CoinLedger
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