Tax season is right around the corner in many countries, so companies in the crypto industry will need to be ready to help their users comply with local laws.
Crypto exchange Binance announced on Feb. 6 that it will launch a tax reporting tool to help users keep track of their crypto transactions.
Binance Tax lets users download a tax summary report including any gains or losses made throughout the year in their Binance account, including spot trades, cryptocurrency donations, and blockchain-based fork rewards.
In response to a growing number of inquiries about tax liabilities from users, the company announced this change.
In the Binance ecosystem, Binance Tax is currently being piloted in France and Canada before extending to other global markets later this year. At the moment, it is only available for information held on Binance platforms, but it says it plans to integrate with other platforms in the future as well.
Binance announced its participation in an association to address sanctions compliance one month ago.
In the aftermath of the FTX crisis, global regulators have tightened their grip on the crypto industry.
In Thailand, the Securities and Exchange Commission recently announced that it plans to tighten up rules for the crypto industry with a focus on investor protection. The South Korean and Dutch regulatory governments have both probed exchanges for non-compliance with local regulations.
Cryptocurrency exchange Kraken pleaded guilty to compliance violations with the Treasury Department’s Office of Foreign Assets Control.
In December 2022, the Securities and Exchange Commission called for firms to disclose exposure to crypto bankruptcies and risks. Meanwhile, a House committee chair reintroduced a bill on crypto innovation, which allows companies to apply for an “enforceable compliance agreement” with federal agencies.
