Binance’s new tax tool will let users calculate taxes related to their cryptocurrency trading activities.
Reportedly capable of supporting up to 100,000 transactions, the new tool 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 “more markets will be added later this year.”
The company did not provide further details on when or to which countries it will be made available. The current version of Binance Tax does not integrate with other platforms or wallets other than the exchange's internal Binance wallet. Binance said it plans to develop these integrations, and that it is considering which integrations and future improvements "will benefit the product in the future."
Binance Tax doesn’t cover all types of transactions, including futures trading and NFTs, but it does support activities like spot trading, crypto donations, and blockchain fork rewards. Unfortunately, for users in many places, the launch of the tool may be a bit too late; for example, the tax deadline for UK cryptocurrency traders is January 31st.
U.S. traders will have longer to pay their taxes until April 18, but it’s unclear whether Binance’s tool will be available to them before then. When it comes to paying capital gains taxes, many long-term investors may not have much to file given the nuclear crypto winter of last tax year.
Despite a recent spike in early 2023, asset prices are down across the board during 2022.
