Cryptocurrency trading is popular in Bangladesh, but US tax obligations are complex for Bangladeshi crypto traders who earn through US exchanges or receive crypto income from US sources. This guide explains when Bangladeshis need an ITIN for crypto and how to stay compliant.
When Do Bangladeshi Crypto Traders Need an ITIN?
You need an ITIN if you:
- Trade on US-based crypto exchanges (Coinbase, Kraken, Gemini) and earn taxable gains
- Receive cryptocurrency income from US sources (mining rewards, staking income, crypto airdrops from US protocols)
- Receive crypto payments from US clients for services
- Have a US LLC that holds or trades cryptocurrency
If you only trade on international exchanges (Binance global, Kucoin, etc.) with no US connection, an ITIN may not be required.
US Exchanges and Tax Reporting
US crypto exchanges like Coinbase are required to report user information to the IRS. If you use a US exchange and earn above certain thresholds, the exchange may issue a 1099 form. Without a Tax ID on file, the exchange may apply backup withholding of 24% on your account.
Additionally, US exchanges are increasingly requesting W-8BEN or W-9 forms to verify your tax status. Providing your ITIN via W-8BEN certifies your foreign status and typically eliminates US backup withholding.
Crypto and Your US LLC
Many Bangladeshi crypto traders operate through a US LLC for additional structure and banking access. Your LLC can hold crypto assets, receive staking rewards, and operate a trading strategy with clear accounting. The LLC's EIN is used for exchange registration, while your personal ITIN ties you to the LLC as the foreign owner.
Note: A US LLC does not automatically eliminate your crypto tax obligations — you still need to consult a CPA about your specific tax situation.
ITIN Plus for Bangladeshi Crypto Traders
If your crypto activity creates US tax obligations or US exchange requirements, ITIN Plus can get you your ITIN in 8–14 weeks for $99. Email apply@itinplus.com. We are IRS Certified Acceptance Agents serving Bangladeshi clients globally.
Frequently Asked Questions
Do Bangladeshi crypto traders always need an ITIN?
Not always. An ITIN is needed if you trade on US-based exchanges, earn US-source crypto income, or have a US LLC that holds cryptocurrency. If you only trade on international exchanges with no US connection, you may not need an ITIN.
Do US crypto exchanges withhold tax from Bangladeshi users?
Yes. US exchanges may withhold backup withholding (24%) if you don't provide a Tax ID. Providing your ITIN via W-8BEN certifies your foreign status and typically eliminates this withholding.
Are crypto gains taxed in the US for Bangladeshi traders?
US tax law on crypto for non-resident aliens is complex. Generally, gains from trading crypto on US exchanges may be subject to US tax. Consult a US CPA specializing in international crypto taxation for your specific situation.
Can my US LLC hold cryptocurrency?
Yes. A US LLC can hold, buy, sell, and earn cryptocurrency. The LLC's EIN is used for exchange accounts, and your ITIN identifies you as the foreign owner on IRS compliance filings.
How long does it take to get an ITIN for crypto?
8–14 weeks from the IRS submission date. ITIN Plus charges $99 for the complete process.