Internal Transfers in Cryptio

When a volume of assets is transferred from one wallet to another, this is considered an Internal Transfer.

For example, in traditional fiat banking, transferring $100 from a Capital One Current Account to an HSBC account would be classified as an internal transfer.

On Cryptio, an internal transfer is a transaction where a crypto-asset and its original cost basis move from one imported wallet to another. These transfers are non-taxable events because the assets remain within your own treasury. No gains or losses are computed, and no tax liability is created.

Cryptio automatically detects most internal transfers, but there are also tools to help you identify and confirm potential cases.

Internal Transfer Criteria

At Cryptio, we aim to make identifying internal transfers as simple as possible so your books remain clean and accurate.

Our system automatically labels transactions as internal transfers when all of the following are true:

• Both wallets are imported into the same Cryptio workspace

• The volumes match exactly

• The assets match (e.g. USDC to USDC)

• The outgoing transaction occurred before the incoming transaction

• Both movements occurred within a maximum of 6 hours

If a pair of transactions meets these conditions, Cryptio will automatically label them as internal transfers.

If you believe transactions are internal transfers but they don’t meet one or two criteria, please contact Customer Support.

Does Cryptio Book Internal Transfers?

Because internal transfers are movements within your own wallets, Cryptio does not automatically synchronize them with your accounting software. This prevents duplicate entries, which could cause reconciliation errors.

If you do want to book them, we recommend only synchronizing the outgoing transaction - and only if it includes a fee.

To do this:

1. Go to the Needs Review module and open Ready to be Synced.

2. Add two filters:

   • Internal Transfer Status → Is → Internal Transfer

   • Order Type → Is → Outgoing

3. Select the filtered transactions by ticking the top checkbox in the table.

4. Click Edit → Synchronize transactions with Xero/QuickBooks/NetSuite/etc.

5. The transactions will now appear in your accounting software.

For incoming internal transfers, you should hide them from synchronization:

1. In the Needs Review module, go to Ready to be Synced.

2. Add filters:

   • Internal Transfer Status → Is → Internal Transfer

   • Order Type → Is → Incoming

3. Select the filtered transactions.

4. Click Edit → Hide from Ready to be Synced view.

These transactions will remain in Cryptio but won’t appear in your sync-ready list. You may still see a red error symbol for failed synchronization—this can safely be ignored.

Needs Review Module: Potential Internal Transfers

Some transactions may not meet the strict automatic matching criteria but still look like potential internal transfers. These appear under Potential Internal Transfers in the Needs Review module.

With the latest update, you can now define your own matching criteria to find possible internal transfers more flexibly.

• Maximum time interval: Set up to 24 hours

• Maximum volume difference: Set between 0–5%

Once you set your criteria, Cryptio will automatically search for potential matches and display them in a dropdown.

To confirm a match:

1. Open the Potential Internal Transfers section.

2. Adjust your matching criteria if needed.

3. Review the suggested matches in the dropdown.

4. Select the correct match.

Once confirmed, Cryptio will automatically build the internal transfer for you.

FAQ

Q: What if I think there are internal transfers that have been missed?
A: First, confirm that both wallets are imported into your workspace. If they meet the criteria but still aren’t detected, please contact Support for help.

Q: What if an automatically labeled internal transfer looks incorrect?
A: Reach out to Support and we’ll investigate further.

Q: I have bridge transactions where the incoming and outgoing assets are different. How should I handle these?
A: Currently, bridge transactions are classified as swaps, not internal transfers. Please contact Support if you need help managing them.