The new tool helps all the users access tax details aligning with their crypto activity to help report information during the upcoming tax season.
For many countries, tax season is just around the corner, which means that companies in the crypto industry must be ready to help their employees comply with local laws.
On Feb. 6, crypto exchange Binance announced the release of a tax reporting tool to help users track their crypto transactions for tax reporting purposes.
According to the announcement, Binance Tax allows its users to download a tax summary report that includes all profits or losses made during the year on their Binance account. This includes financial transactions, crypto offerings, and blockchain-based fork rewards.
The company said that this comes in response to the increasing number of questions from users about their tax services. Binance Tax is currently in a pilot phase in France and Canada before expanding to other global markets within the Binance environment later this year.
Currently, it is only for the information held on the Binance platform; however, he says that he wants to expand to integrate it with other company platforms in the future. This comes a month after Binance announced that it is participating in an association to ensure global acceptance of restrictions.
Over the past year, global regulators have strengthened their grip on the crypto industry, especially following the FTX crisis that shook the industry. In Thailand, the Securities and Exchange Commission recently announced plans to close the rules for crypto companies with a focus on investor protection.
Regulators in South Korea and the Netherlands have anticipated regulatory changes for non-compliance with local regulations. Regulators in the United States are also looking at the crypto situation.
Cryptocurrency exchange Kraken has been indicted by the Treasury Department’s Office of Foreign Assets Control for violations. In December 2022, the United States Securities and Exchange Commission called on companies to disclose their exposure to liquidity and crypto risks. Meanwhile, the chairman of the committee of the House has reintroduced a new crypto bill, which allows companies to seek “consent agreements” with federal agencies.
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