Binance announced Feb. 6 that it will be implementing a reporting tool for taxes associated with crypto. Customers who use this service will have an easier time keeping track of the cryptocurrency transactions that are relevant to the filing of their tax returns.
According to the statement published by the company, this decision was made in response to an increase in the number of inquiries received from customers regarding their own individual tax liabilities.
Binance practices compliance through taxes reporting
Binance Tax gives its users the chance to receive a tax summary report that outlines any gains or losses that have occurred in their Binance account throughout the course of the calendar year. This information can be accessed by logging into their Binance account.
This includes transactions that take place on the spot, donations made in the form of cryptocurrencies, and fork incentives that are based on blockchain technology.
This follows Binance’s announcement one month ago that it would participate in an initiative to address compliance with global sanctions.
Crypto space undergoes thorough scrutiny
The crypto industry has been receiving a great deal of attention from the many regulatory bodies located in the United States.
The regulatory environment surrounding cryptocurrencies has become more restrictive over the course of the past year. This is especially true in the wake of the FTX collapse, which jolted the market.