The world’s largest cryptocurrency exchange by trade volume, Binance has introduced a tax feature to prepare users ahead of the impending widespread crypto regulation.
Investors King understands that a number of countries including the United Kingdom, the United States, and Sweden are on the verge of regulating cryptocurrency. These regulations will lead to the taxation of crypto assets.
Subsequently, cryptocurrency brokerage and crypto companies will need to help their users to comply with local regulations.
Following the fall of FTX which led to the loss of billions of dollars, regulators across countries have taken further steps to protect users and also ensure compliance.
For instance, the Thailand Securities and Exchange Commission recently announced a plan to tighten up rules for the crypto industry with a focus on investor protection.
According to a blog statement released by Binance, the tax reporting tool will enable Binance users to monitor their cryptocurrency for tax reporting.
The statement added that Binance users will be able to download a tax summary report which will indicate both gains and losses. This service will come at no cost.
Binance noted that it understands that filing taxes can be a confusing, cumbersome, and time-consuming process for many crypto users, thus the necessity of the feature.
This tax feature which could capture up to 100,000 transactions will be most important for daily traders who will hitherto have spent quality time to ensure the accuracy of their taxes.
“If you’re struggling to stay on top of your crypto taxes, or just looking to speed up the process, make sure to check out our recently-launched crypto tax calculator, Binance Tax”.
“In one click, you can now import your Binance transactions into our calculator and obtain a simple yet comprehensive estimate of your tax obligations depending on your jurisdiction”. The statement read in part.
However, the Binance tax feature is not yet fully available to all users as the pilot phase is only accessible to Binance users based in Canada and France.
