Binance, one of the world’s largest cryptocurrency exchanges, has launched a tool aimed at making it easier for users to determine their tax obligations on crypto transactions. The new Binance Tax tool, which is currently available to users in Canada and France, provides an estimate of a user’s tax obligations depending on their jurisdiction with the click of a button. The exchange intends to expand the tool to other regions in the future.
The move by Binance comes as governments around the world are looking to tax the cryptocurrency industry and ensure they are not missing out on revenue. The introduction of firmer requirements around the taxation of crypto assets has been on the rise in recent months, with Italy implementing a 26% tax on crypto trading gains in excess of €2,000 ($2,160) and India adding jail time of up to 84 months for noncompliance with reporting requirements.
The aim of Binance Tax is to make the calculation of gains and losses for crypto traders more straightforward. While the tool is still in its early stages and does not yet support all types of transactions, it could be a valuable resource for frequent traders who otherwise would have to spend countless hours manually calculating their tax obligations.
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