Crypto Exchange Binance Launches Tax Reporting Tool

[Nathrixxx]

One of the key features that keep bimance of the most generally accepted trading platform is their sense of humor, they make review time to time and develop their service for upgrade with unique featires, thou they can charge if you don't mind the consideration compare to others, now another tool was build for third party tax charges having some unique features.

|Crypto Exchange Binance Launches Tax Reporting Tool
Binance is launching a Tax Reporting Tool to assist the exchange with compliance requirements.
By Scott Chipolina

Jul 28, 2021

Crypto exchange Binance is launching a Tax Reporting Tool that will enable its users to “keep track of their crypto activities and streamline reporting requirements,” per a statement released yesterday.

“The fact is that in many countries around the world, crypto regulations are still evolving and we are all discovering the right path for this promising, young and exciting industry,” said Changpeng Zhao (“CZ”), CEO of Binance.

The new tool allows users to transfer their transaction history to a third party, and also obtain overviews of their tax liabilities. Though the tool will help users, it also comes at a time when the exchange has been under fire from regulators globally.

For more details, you can click the link below:

https://decrypt.co/77032/crypto-exchange-binance-launches-tax-reporting-tool?amp=1

[AB de Royse777]

This is most likely a service discussion topic, which obviously not belong to this (Trading Discussion) board. I hope you will give a thought to move the topic to the board it deserves.

[Jawhead999]

Seems like Binance want to become the biggest CEX ever by cooperate with many regulations, the third party could ask more KYC of Binance user since in tax reporting they need a lot identity to calculate the correct taxes. I wonder if it's really free to use the tax reporting tool since hiring a reputable accountant to calculate the tax isn't free.

[o_e_l_e_o]

Binance are really going hard with the whole "regulation" thing over the last few days. First they slash non-verified daily withdrawals from 2 BTC to only 0.06 BTC. Then CZ comes out and says he would be happy to step aside for a more "compliance background CEO" to show Binance's commitment to obeying regulations and compliance. And now they say they will start automatically calculating your tax liabilities, and I'll eat my hat if they don't then start sharing that information with various governments and tax agencies around the world.

Binance are obviously trying their hardest to be allowed to maintain and scale up their operations in as many countries as possible. All about the profits. Just a shame that all their users will be the ones paying the price as Binance sells them and their data out to governments and associated agencies. If you got involved in bitcoin because you didn't like the government sticking their nose in to your finances and dictating what and when you were allowed to spend your money on, then it's long past time to abandon Binance.

[nelson4lov]

~Snipped

Binance has been real solid over the years but this year, they got hit pretty hard, enough to make users to start checking either for alternatives or switch to using non-custodial approach whenever they interact with cryptos. Binance seemed like a safe haven for users to escape regulations but not anymore. I reckon that it wouldn't take much longer before they would give in to the pressure from regulatory compliance orgs and government agencies and when that happens, any user still with them with be used as scapegoat. There won't be "SAFU" funds as those might get seized too.

CZ handled binance's operations really well and the fact that he's stepping down only means they're losing the regulation war. It's time to jumpship.

[stompix]

One of the key features that keep bimance of the most generally accepted trading platform is their sense of humor, they make review time to time and develop their service for upgrade with unique featires, thou they can charge if you don't mind the consideration compare to others, now another tool was build for third party tax charges having some unique features.

Unique features?
It's just a history of your trade, coinbase had the same thing going for two years, besides, for both you need a second client to calculate your taxes, Binance has Koinly as recommended, Coinbase works best with CoinTracker.

I wonder if it's really free to use the tax reporting tool since hiring a reputable accountant to calculate the tax isn't free.

Using their API is free, using the third party calculator isn't that free anymore Cointracker, Koinly.

And now they say they will start automatically calculating your tax liabilities, and I'll eat my hat if they don't then start sharing that information with various governments and tax agencies around the world.

Your hat it safe!

We also protect our users through our work with law enforcement agencies such as the U.S. Internal Revenue Service (IRS),  the UK South East Regional Organized Crime Unit, and many more to crack down on cybercrimes such as money laundering, terrorist financing and scams. In 2021 so far, we have completed assisting 5,600 investigation requests already, which is 100% more than those in 2020. Most recently we supported the takedown of a prolific cybercriminal ring responsible for laundering over $500M worth of damages from dark web operations and high-profile cyber attacks.

[ethereumhunter]

Seems like Binance want to become the biggest CEX ever by cooperate with many regulations, the third party could ask more KYC of Binance user since in tax reporting they need a lot identity to calculate the correct taxes. I wonder if it's really free to use the tax reporting tool since hiring a reputable accountant to calculate the tax isn't free.

It should be free but I am not sure, will it not be free, I think it will be free. Everything I have seen is that binance is becoming more regulated, this will happen, the  crypto freedom is taking away by the governments, I will advise anyone that is not trading to transfer his crypto coins to wallet that have private key.

If Binance still forcing its members to follow every rule they made, I doubt Binance will still become the biggest exchange because people who do not want to be controlled by any third part will start moves their funds from Binance and search for the other exchange that will not be too strict for them. Binance itself should realize that crypto is about anonymity for its members. Although they can ask their members to verify themselves, it does not mean Binance can force anything on their members.

[o_e_l_e_o]

Your hat it safe!

Oh wow. "Yes, we totally spy on you, use blockchain analysis companies, collect details regarding the source of all your deposits and the destination of all your withdrawals, build up a complete profile against your real name, and share all that with your government, but you must understand that this is all a good thing!"

[slaman29]

Seems like Binance want to become the biggest CEX ever by cooperate with many regulations, the third party could ask more KYC of Binance user since in tax reporting they need a lot identity to calculate the correct taxes. I wonder if it's really free to use the tax reporting tool since hiring a reputable accountant to calculate the tax isn't free.

Actually, I believe they already kind of are the biggest CEX. Minus American customers, there is no other exchange with as deep liquidity as you can find on Binance, and that's just what people put on the orders, I believe Binance themselves are capable of injecting more if they want to step in.

Sooner or later they have to "play fair" about regulations though. It's something unavoidable in this scene.

[OcTradism]

Seems like Binance want to become the biggest CEX ever by cooperate with many regulations, the third party could ask more KYC of Binance user since in tax reporting they need a lot identity to calculate the correct taxes. I wonder if it's really free to use the tax reporting tool since hiring a reputable accountant to calculate the tax isn't free.

Centralized exchanges don't care about privacy of customers. They will do anything that is mandatory required by governments. They will implement new policy to meet regulations from governments.

If you use centralized exchanges, you can not require them to protect your privacy. When you submit documents to verify KYC on centralized exchanges, your privacy is broken.

[Tutorial] Crypto taxes for beginners

[o_e_l_e_o]

I believe Binance themselves are capable of injecting more if they want to step in.

Of course they can. They have a number of centralized shitcoins under their control, such as BNB and also the BUSD stablecoin. Since these coins are completely centralized, there is nothing stopping them printing more and "injecting" them in to the market if they choose.

Sooner or later they have to "play fair" about regulations though. It's something unavoidable in this scene.

It's only unavoidable because the masses are allowing it to happen. No more unverified withdrawals? "OK, well it was good while it lasted." Hand over your details to the government? "Well, even though there is no evidence that KYC prevents money laundering, I guess I'll put up with that too." Utterly ridiculous withdrawal fees? "Well, even though 95% of the fee I am being charged is unnecessary and they are just making pure profit, I'll accept that too."

There are dozens of reasons, any one of which would be enough to make me stop using centralized exchanges. And yet people keep giving their money to these companies which treat them so poorly. And so the cycle continues.

[slaman29]

Sooner or later they have to "play fair" about regulations though. It's something unavoidable in this scene.

It's only unavoidable because the masses are allowing it to happen. No more unverified withdrawals? "OK, well it was good while it lasted." Hand over your details to the government? "Well, even though there is no evidence that KYC prevents money laundering, I guess I'll put up with that too." Utterly ridiculous withdrawal fees? "Well, even though 95% of the fee I am being charged is unnecessary and they are just making pure profit, I'll accept that too."

There are dozens of reasons, any one of which would be enough to make me stop using centralized exchanges. And yet people keep giving their money to these companies which treat them so poorly. And so the cycle continues.

The sad thing is that convenience and user friendliness is considered higher than everything else. And even for me, to be honest, I choose convenience and ease of use rather than a secure p2p trading that still comes with its own risks. I comprehend at least the benefits of trying to choose something that is not a CEX but also for most people, choosing p2p or something decentralized could be more dangerous (like all those guys who get scammed on localbitcoins).

At the end of the day people are willing to pay for convenience and "feeling of safety". This is the problem non-CEX need to overcome.

[o_e_l_e_o]

At the end of the day people are willing to pay for convenience and "feeling of safety". This is the problem non-CEX need to overcome.

Convenience I will grant you. Although I would argue onboarding to a new DEX such as LocalCryptos is significantly easier than onboarding to a new CEX such as Binance (literally just make an account versus make an account, hand over all your personal details, upload scans of your documents, take selfies, wait several days for verification, link a bank account, deposit fiat, wait several days for it to clear), when trading fiat/bitcoin pairs then a CEX will always have the upper hand in terms of transaction speed because of the slowness of the fiat banking system. Maybe once CBDCs come along and you can move fiat instantly between users that will change. Bitcoin/altcoin pairs are a different matter and can already be traded instantly on DEXs.

The "feeling of safety" I don't disagree with, but it's worth pointing out that that is very much a feeling as opposed to being grounded in fact. Centralized exchanges have been responsible for far more scams, hacks, thefts, and losses, then DEXs have been. Given that you do not either provide your personal information nor deposit your coins to a good DEX, they are inherently far more secure than a CEX, since there is simply nothing to be hacked or stolen from their platform. If you only choose to trade with trusted users and follow all the recommendations regarding escrows, communication, release of funds, etc., then you chance of being scammed is tiny.

[GreatArkansas]

I think this Tax Reporting Tool is only for some countries that are required to submit your taxes.
There are a lot of countries that are supported by Binance or available to use Binance without any issues regarding cryptocurrency issues.

This could be a negative effect for Binance Exchange? Or it is normal?

[slaman29]

Convenience I will grant you. Although I would argue onboarding to a new DEX such as LocalCryptos is significantly easier than onboarding to a new CEX such as Binance (literally just make an account versus make an account, hand over all your personal details, upload scans of your documents, take selfies, wait several days for verification, link a bank account, deposit fiat, wait several days for it to clear), when trading fiat/bitcoin pairs then a CEX will always have the upper hand in terms of transaction speed because of the slowness of the fiat banking system. Maybe once CBDCs come along and you can move fiat instantly between users that will change. Bitcoin/altcoin pairs are a different matter and can already be traded instantly on DEXs.

The "feeling of safety" I don't disagree with, but it's worth pointing out that that is very much a feeling as opposed to being grounded in fact. Centralized exchanges have been responsible for far more scams, hacks, thefts, and losses, then DEXs have been. Given that you do not either provide your personal information nor deposit your coins to a good DEX, they are inherently far more secure than a CEX, since there is simply nothing to be hacked or stolen from their platform. If you only choose to trade with trusted users and follow all the recommendations regarding escrows, communication, release of funds, etc., then you chance of being scammed is tiny.

I think the onboarding process seems easier only to us, just like how using a Bitcoin wallet to sign and choose inputs and select fees seems easy to us... but to most other people, having a mobile app. I think of the exchanges that people use here which is not so much binance but like tokenize or luno which I use, I know most people never heard it but everyone here uses it because it has a license (unlike Binance), an app that can "instant exchange" local payment method to crypto and vice versa in a few taps.

The KYC is linked to bank account so if you already have a bank account you just link and that is your kyc. It's very, very easy and convenient and instant. And it will get even easier between all apps where you can send ppl money and crypto using their phone number, imagine selecting your contact from yr phone to send crypto.

It's not real crypto of course but only people like us know that, but most people don't know and frankly don't care. I tried showing some people what a real Bitcoin wallet should look like and the look on their face is just disgust lol.

[o_e_l_e_o]

It's not real crypto of course but only people like us know that, but most people don't know and frankly don't care.

Yeah, so when you say it's not "real crypto", I assume you mean you can't actually withdraw the bitcoin from those apps to your own wallet, send them to someone else, spend them, use them, etc? In that case, then you're right - such apps will always be easier and more user friendly than any real bitcoin wallet. If you remove seed phrases, private keys, addresses, transaction signing, and everything else, then all that remains for the app to do is display a balance updated from a centralized server.

If you want to actually own bitcoin and be your own bank, then there is a certain level of technical features that must be present in an app. We can only simplify things so far. I'm not sure how we overcome that hurdle for the most technophobic people in the world.

[Rikafip]

I think this Tax Reporting Tool is only for some countries that are required to submit your taxes.

I think it's quite the opposite and majority of countries have tax on crypto but it's another thing whether you want to risk it and not report crypto tax. It's all fine when you are buying some  things with your crypto profits but the moment you wanna buy something bigger like house, government will start asking questions about origins of money.

This could be a negative effect for Binance Exchange? Or it is normal?

I don't think this will affect Binance in any way. Those who don't plan to report tax will ignore this feature, while those that reporting will probably find this helpful. What sucks though is lowering of max daily withdrawal to only 0. 06 BTC to those that haven't gone through KYC, making it basically mandatory to do that.

[Kittygalore]

That's a really useful tool in my opinion although I haven't seen a notification that Binance have added that feature in their app on my phone, I don't have to worry about it though because my country still hasn't take their chances with crypto yet so I don't worry about taxes anytime soon, I just hope that it's not going to be stressful to use because that's the case for tax reporting tools because they want people to spend money on reporting their taxes.

[so98nn]

Binance are really going hard with the whole "regulation" thing over the last few days. First they slash non-verified daily withdrawals from 2 BTC to only 0.06 BTC. Then CZ comes out and says he would be happy to step aside for a more "compliance background CEO" to show Binance's commitment to obeying regulations and compliance. And now they say they will start automatically calculating your tax liabilities, and I'll eat my hat if they don't then start sharing that information with various governments and tax agencies around the world.

Woof! That's gonna be complicated process because some person can be moving lots of coins here and there on everyday basis. I am not sure how they will be tracking the whole process. Moreover, this is gonna be bad for the Binance itself because many people won't accept the thing that Binance is gonna take the advantage to report the tax liabilities which means it will breach the whole point of Bitcoin Usage - The Data Integrity

Binance are obviously trying their hardest to be allowed to maintain and scale up their operations in as many countries as possible. All about the profits. Just a shame that all their users will be the ones paying the price as Binance sells them and their data out to governments and associated agencies. If you got involved in bitcoin because you didn't like the government sticking their nose in to your finances and dictating what and when you were allowed to spend your money on, then it's long past time to abandon Binance.

Ahh, thats what my point is up there. I hope they do not force every user to do the tax filing through their new launch. They should give options to everyone. But again if this option is made open then very few to no one will accept the tax filing. I always believed that crypto was all about the anonymous nature of transacting but with such hard rules it's all going messy.

[o_e_l_e_o]

Those who don't plan to report tax will ignore this feature

Not really an option. If you use Binance, then you should fully expect that Binance will be reporting your taxable activities to your government, who will come knocking at your door soon enough if you haven't paid your taxes. Using centralized exchanges with KYC while evading taxes is a monumentally stupid thing to do.

They should give options to everyone. But again if this option is made open then very few to no one will accept the tax filing. I always believed that crypto was all about the anonymous nature of transacting but with such hard rules it's all going messy.

Sure, you can choose to ignore their new tax reports, but that doesn't mean Binance won't generate them or send then to your government. Especially with new laws being proposed and passed, like the one in the US mandating that all exchanges directly server their customers with the necessary tax forms for completion and filling.

Bitcoin was never primarily about being anonymous, but again, there is no possible way to be anonymous while using centralized exchanges.