The Binance exchange is the largest crypto currency brokerage business in the world, measured by trading volume. It has now announced the debut of a new Binance Tax product that will assist its users in easing the process of completing their tax returns.
The Binance Tax tool (1) will initially be made accessible to consumers in France, and eventually, it will be made available to customers located in other countries across the world.
Binance Tax was developed in response to a request made by users of the exchange that had been ongoing for some time. Based on the trading site, the new feature will allow customers to obtain a report that offers a tax breakdown from any profits or losses they have had while using Binance.
Taxation within the context of the ecosystem of digital currencies continues to be one of the most complex topics of discussion within the sector at this time. Existing tax rules require those in the crypto currency industry to file their tax returns by these regulations, even though many governments do not formally recognize crypto currencies.
Because crypto currency and blockchain technology are still in their infancy, submitting proper tax returns depending on trading activity on exchanges is now exceedingly challenging.
This is one of the most significant problems Binance Tax intends to solve for all its customers. The trading platform informed customers that they could access the product by logging in to their accounts if they were in a supported jurisdiction.
After successfully logging in, users will be required to locate the tax area and choose one of the following three options: "Realized Capital Gains," "Income Gains," or "Transactions."
When you are finished, this will immediately create a tax report that you may download, including a summary of any profits or losses during the selected period.
This tool is intended to bring every Binance user into compliance with the tax requirements in their respective jurisdictions. The exchange is expecting that, with the help of this assistance, the procedure and the lack of interest on the part of its users can be erased.
A Framework for International Implementation
The introduction of the Binance Tax service in France was an important milestone for developing the service, which will soon be made accessible in a variety of other nations across the world.
Even though the trading platform has confirmed that the tool is still going through strategic development, the company has stated that it is dedicated to receiving input to enhance the quality of the service.
Mayur Kamat, the head of product of Binance, was recently quoted as saying, "We're regularly looking for ways we can provide products that simplify our customers' life simpler."
He explained that this frequently involves actively listening to and responding to user input.
"We heard that our customers needed a simpler method to be able to view and understand their taxes, so we are delighted to introduce this new, free-to-use tax tool to our audience, starting in France," the company said in a statement.
The trading platform indicates that the Binance Tax service is now subject to many restrictions. One of these restrictions is the wallet's inability to interface with other platforms or wallets.
On the other hand, the company has stated that it plans to investigate the possibility of including this and other valuable features in the distant future.