Binance’s new tax tool will let users calculate the tax associated with their crypto trading activity.
The new tool, which can reportedly support up to 100,000 transactions, will allow users to download a report showing a tax summary of any gains or losses made using Binance.
The tool is currently only available in France and Canada, but a Binance spokesperson told Decrypt that “there will be more markets added later this year.”
The firm didn’t provide any more specifics about when or to what countries.
The current version of Binance Tax doesn’t integrate with other platforms or wallets other than the exchange’s in-house Binance Wallet. Binance says it’s planning to develop these integrations, and that it is considering which integrations and future improvements “would be beneficial in the future for this product.”
Binance Tax does not cover all types of transactions, including futures trading and NFTs, though it does support activities such as spot trades, crypto donations, and blockchain fork rewards.
Binance tax tool misses deadline for many
Unfortunately, the tool may have been introduced slightly too late for users in many locations; the tax deadline for crypto traders in the UK, for example, was January 31.
U.S. traders will have slightly longer to do their taxes, until April 18, but it’s unclear if Binance’s tool will be available for them to use before then.
In terms of paying capital gains taxes, many long-term investors may not have much to declare given the nuclear crypto winter that set in over the last tax year.
Despite a recent surge upward at the start of 2023, asset prices were down across the board during 2022.
Bitcoin has plummeted from $46,319 on January 1, 2022, to $16,604 on January 1, 2023, per CoinGecko data.
Leave a Reply