Cryptoasset exchanges may only keep records of transactions for a short period of time; exchanges also come and go; so UK taxpayers must take care to keep appropriate records of crypto trading activity, and not place too much reliance on the exchange platforms.
Records may be kept in different formats:
- paper (cold) wallets containing the public and private keys;
- electronic (hot) wallets on devices;
- other records of transactions, for example reports downloaded from a cryptoasset exchange;
- hardware (cold) wallets like a usb stick, containing public and private keys.
Cryptoassets are digital assets so all records in a wallet should show transactions AND balances, either in full form or else referable to a public blockchain.
An individual's access to fiat money could come from:
- the point of deposits into a bank account; and
- the use of a cryptoasset ATM.
These records should also be retained so that they can be produced, if required, in the event of an HMRC enquiry.
A full record of cryptoasset transactions would often include all of the following:
- the type of cryptoasset;
- the date of the transaction;
- whether they were bought or sold;
- the number of units involved;
- the value of the transaction in GB Pounds at the date of the transaction;
- the cumulative total of the tokens held; and
- bank statements and wallet addresses.