The crypto industry is facing increased scrutiny from regulators as tax season approaches, and Binance has responded by launching a tax reporting tool to help users stay compliant with local regulations.
The tool, Binance Tax, generates a tax summary report that includes all gains and losses incurred throughout the year, including spot trades, crypto donations, and fork rewards.
The tool is currently in a pilot phase in France and Canada and will be available in other markets later in the year.
Binance Tax is only available for information held on Binance platforms, but the company plans to integrate with other platforms in the future.
The launch of Binance Tax comes amid increased regulatory attention on the crypto industry.
Global regulators have tightened their grip on the crypto sector in the wake of the FTX crisis and recent non-compliance probes by regulators in South Korea, the Netherlands, and the US.
The Securities and Exchange Commission in Thailand has announced plans to tighten rules for the crypto industry with a focus on investor protection, while exchanges like Kraken have had to settle with the treasury department’s Office of Foreign Assets Control over compliance violations.
