Crypto Exchange Binance Introduces Tool for Calculating Taxes on Transactions
Cryptocurrency exchange Binance has introduced a tool to help users calculate the tax obligations on their crypto transactions as governments increasingly look to ensure they don't miss out on revenue from the industry.
The free tool can support reporting of up to 100,000 transactions and is available initially to users in Canada and France. The exchange has plans to extend it to other regions, it said in a blogpost Monday.
Several countries have introduced firmer requirements around taxation of crypto assets in recent months. At the end of last year, Italy brought in a 26% tax on crypto trading gains in excess of 2,000 euros ($2,160). Meanwhile, India this month added teeth to its crypto tax rules, with a provision for jail time of up to 84 months introduced for non-compliance with reporting requirements.
The aim of Binance Tax is to simplify the calculation of gains and losses throughout the year. For frequent traders, this could amount to thousands of transactions, meaning many hours of work to ensure correct calculation. Still, the product is in an early phase and does not support all types of transactions. Users will need to make adjustments.
"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," Binance said on Monday.