Key takeaways
- Exodus does not report directly to the ATO.
- The ATO can still track Exodus users through blockchain analytics and its crypto data-matching program.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Exodusâs tax reporting policies within Australia. Weâll also break down a simple way to report your Exodus taxes in minutes.
What is Exodus?
Exodus is a multi-chain cryptocurrency wallet available on desktop and mobile. Exodus also has built-in exchange services through third parties.Â
Exodus does not collect Know Your Customer (KYC) information for most users. However, some trades facilitated by third-party providers may require ID verification.Â
However itâs likely the ATO can trace your Exodus transactions, especially if youâve transferred to/from an AUSTRAC-registered exchange.
Does Exodus report to the ATO?
No. Exodus does not share information with the ATO or issue tax forms.
Still, itâs likely that the ATO can track your Exodus activity:Â
- Blockchain transparency: All transactions on the blockchain are publicly visible. That means the ATO can crack down on tax fraud by linking âanonymousâ wallets to known investors. â
- ATO data-matching: The ATOâs crypto data-matching program pulls records from AUSTRAC-registered exchanges. This gives the ATO visibility into millions of crypto transactions and helps them identify wallet addresses.
If I use Exodus in Australia, do I owe taxes?
Yes. Transactions on Exodus are taxable under Australian law.
- Capital gains: Selling, swapping, or spending crypto is a capital gains tax (CGT) event. If youâve held the asset for more than 12 months, you may qualify for a 50% CGT discount.
- Income: Staking rewards, airdrops, and other rewards are taxable as ordinary income based on fair market value upon receipt.Â
Moving crypto between your own wallets is not taxable.
Does Exodus have KYC?
No. Exodus doesnât require ID to use.Â
However, third-party exchange services on Exodus may request KYC.
Is Exodus legal in Australia?
Yes. Exodus is legal to use in Australia.Â
Be sure to keep proper records of your transactions and report your crypto activity to the ATO.
How do I reduce my Australian taxes from Exodus activity?
While you canât legally evade your taxes, you can take steps to reduce your tax bill:Â
- Tax-loss harvesting: By selling crypto at a loss, you can offset capital gains and potentially reduce your tax bill by thousands of dollars. â
- Use crypto tax software: Crypto tax software like CoinLedger pulls in your transactions from Exodus and other platforms, showing you your biggest tax-saving opportunities.
Get a Exodus tax report today
Looking for a simple way to report your Exodus taxes? With CoinLedger, you can import your Exodus transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Exodus and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
