Crypto exchange Binance is launching a new tax reporting tool to help crypto users access tax details aligning with their crypto activity and also to help report information during the upcoming tax season.
In order to assist customers to keep track of their cryptocurrency transactions for tax reporting reasons, cryptocurrency exchange Binance announced on February 6 that it is developing a tax reporting service.
The release states that customers may get a tax summary report from Binance Tax that contains any profits or losses in their accounts during the year. This includes cryptocurrency contributions, spot transactions, and incentives from blockchain-based forks.
The business said that this is in response to an increase in user questions concerning their tax obligations.
Prior to being introduced to more international countries in the Binance ecosystem later in the year, Binance Tax is now in a test phase in France and Canada. It states that it will eventually grow to interface with other platforms in the sector even though it is only now accessible for data stored on the Binance platforms.
This occurs one month after Binance declared its involvement in a group addressing global sanction compliance.
Global authorities have increased their control over the cryptocurrency sector over the last year, notably in the wake of the FTX crisis that rattled the industry.
The Securities and Exchange Commission (SEC) in Thailand has declared its intention to strengthen regulations for the cryptocurrency business with an emphasis on investor safety. Exchanges have been the focus of regulatory investigations for non-compliance with regional norms in both South Korea and the Netherlands.
American regulators are also interested in the crypto ecosystem. In order to resolve compliance issues, the bitcoin exchange Kraken reached a settlement with the Office of Foreign Assets Control of the Treasury Department.
The SEC requested that companies report their exposure to cryptocurrency risks and bankruptcy in December. A law on crypto innovation that enables businesses to file for an “enforceable compliance agreement” with government authorities has also been proposed by the head of a House committee.