Binance has launched a new tax reporting tool on its trading platform.
The tool let users transfer their transaction history to third-party crypto taxation services.
The launch is one of many steps Binance has taken to comply with regulators in recent weeks.
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Binance has introduced a tax calculator on its trading platform.
New API To Help Calculate Taxes
Binance, the world’s largest cryptocurrency exchange by trading volume, has integrated an API tool to help traders to keep track of their tax obligations.
In a blog post, the exchange announced its tax reporting tool could be accessed in the API management section of both its website and mobile applications.
The API lets users transfer the transaction history and data on capital gains and losses from Binance to third-party crypto taxation services.
Binance added that it would also let users integrate third-party tax services so they know their real-time tax liability via the API. Moreover, users will be able to fetch trading data for “more than 1 financial year” to help them file appropriate taxes. The exchange said:
“With Binance, you are now able to have all your transactions tracked and accounted for automatically with our Tax Tool Functionality.”
In the past, traders had complained of Binance not having an easy-to-use exporting tool for tax calculations. Traders had to manually export transaction history and the previous tool only let them export data from three months at a time.
For traders, calculating precise tax obligations can be a cumbersome task, and most regulated exchanges help them with reporting based on their transaction history.
Tax reporting requirements vary from country to country, especially in regard to capital gains on cryptocurrency trading. While some countries do not charge capital gains, most demand capital gains taxes on every profitable trade.
Apart from improving tax compliance among its users, introducing a tax reporting tool is another example of Binance responding to regulatory pressure. The exchange has taken many steps to quell regulators recently. This month, the firm has slashed daily withdrawal limits for unverified users, reduced its maximum leverage limit, and halted its tokenized stocks offering.
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