Binance, the world's largest cryptocurrency exchange, on Wednesday a tax reporting tool that it said will help users keep track of their crypto activities and tax reporting needs. The Tax Reporting Tool will allow users to send their Binance transaction history to third-party tax vendors – say accountants -- for easy compliance with taxation laws. The tool will also provide users with real-time details of their local tax liabilities. This development has come at a time when Binance is facing scrutiny from regulators over the alleged use of the platform for money laundering and taxation-related offences.
The company, however, asserted in a statement that its new tool is part of a “broader strategy” to expand user protection and risk management protocols. Binance said it recently revised the daily withdrawal limits and updated leverage limits for futures accounts to mitigate risks to its users.
Binance, which owns the fourth-biggest cryptocurrency Binance Coin, offers cryptocurrency spot and derivatives trading to users across the globe. Its exchange allows users to trade directly with each other. But regulators and other financial authorities in several countries, including the UK, Germany, and Japan have raised concerns about the risks involved. Recently, the British financial watchdog stopped Binance from carrying out regulated activities. A Reuters report on Wednesday quoted Binance Founder and CEO Changpeng Zhao as saying that he wanted to improve relations with regulators.
Zhao said in the statement that crypto regulations are still evolving in many countries and everyone is “discovering the right path” for this young industry. He said Binance is working hard to align with evolving regulatory standards by taking a range of measures like updating safeguards and introducing new products like the Tax Reporting Tool.
The company said its users will be able to access the tool via “Account” and “API Management'' on the Binance website as well as the Binance App. It has also shared a step-by-step guide on how to use the tool.