- Binance has unveiled a new advanced tax tool to help users track their tax obligations based on their jurisdiction.
- Binance Tax is a free tool that allows users to download a tax summary report of their gains and losses on up to 100,000 transactions.
- Now available in France and Canada, Binance will make the tool available in more countries and be used outside the Binance ecosystem.
Binance, the world’s largest cryptocurrency exchange, has launched a new tax tool providing crypto investors information on the taxes associated with their trading activities in preparation for the incoming tax season.
Binance Launches Tax Tool
On Monday, February 6th, Binance announced the launch of Binance Tax. This crypto tax calculator generates an estimate of a trader’s tax obligations based on their activities and depending on their jurisdiction.
According to the report, the Binance Tax tool will allow users to download a report showing a tax summary of all the gains and losses they made trading with Binance. Some transactions include spot trades, crypto donations, and blockchain fork rewards.
To access your tax records, log in to the Binance Tax platform with your Binance account details. Select ‘Realized Capital Gains,’ ‘Income Gains,’ or ‘Transactions,’ and the tool will generate a downloadable tax report showing a breakdown of your gains and losses.
Binance Plans on Expanding
Binance has said the tool is only in its early phases and undergoing a pilot launch in France and Canada. The Binance team assured users that they are working to implement support for more regions soon.
In addition, the team will also add other transaction types currently not covered by the app in the future. The Binance Tax tool will integrate support for other networks and wallets outside Binance as it evolves.
Why Investors Look Forward to the Launch of Binance Tax
The launch of Binance Tax is in response to the growing demand from customers to have an easy-to-use tool to understand their tax liability on the platform.
With Binance Tax, crypto investors no longer need to worry about spending time to compute their transactions, gains, and losses throughout the year, as the tool automatically computes.
Binance promises that the tool can accurately generate up to 100,000 transactions throughout the Binance ecosystem. In addition to saving hours’ worth of work, the advanced tax tool is free for all Binance users.
On the Flipside
- After several months of conflict, Binance severed ties with WazirX, asking the Indian crypto exchange to withdraw all funds from Binance wallet services.
Why You Should Care
Binance Tax could become a must-use tool, and with plans to expand even outside the Binance ecosystem, it could help crypto investors cope with the increasing global push for crypto taxation.
To understand how crypto taxation work, read:
Introduction to Crypto Tax Regulations: A Comprehensive Guide
Binance’s recent expansion moves are covered in:
Binance Partners with Mastercard (NYSE:MA) to Introduce Prepaid Crypto Card in Brazil