Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Beyond the integrated Binance tax reporting tool, the exchange has also taken action to reduce the daily Bitcoin (BTC) withdrawal limit for its users that have not completed the KYC verification requirement.
Binance, the world’s largest cryptocurrency exchange by trading volume has provided integration for a tax reporting tool in a bid to continually pacify regulators. As the regulatory scrutiny on the trading platform tightens, it is steadily overhauling its operational offerings to make its products and services more compliant to the broader financial standards.
Per the firm’s update on the tax reporting tool which is billed to become effective today, the tool is a “new API tool to allow Binance users to easily keep track of their crypto activities in order to ensure they are fulfilling the reporting requirements laid out by their regulatory bodies.” The exchange said the API has two basic capabilities with the first being the ability to “Transfer read-only user transaction history and records of capital gains and losses on Binance to third-party tax vendor tools.”
Additionally, Binance users can “get a real-time overview of their local tax liabilities by integrating third-party tax vendor tools via the Tax Reporting Tool.” This way, the “API import function will dynamically pull transaction history and records of more than 1 financial year to file taxes.” The choice of third-party tax vendors will be at the discretion of each user as the trading platform noted it is not endorsing any particular tax vendor.
“The regulatory framework for taxation of cryptocurrencies differs from country to country, hence we strongly advise you to contact your personal tax advisor for further information about your personal tax circumstances. It is your personal responsibility to select the correct tax jurisdiction that applies to you,” Binance said in the issued disclaimer.
The Compliment to the Binance Tax Tool: Reduction in Daily Withdrawals
Beyond the integrated Binance tax reporting tool, the exchange has also taken action to reduce the daily Bitcoin (BTC) withdrawal limit for its users that have not completed the Know-Your-Customer (KYC) verification requirement. According to the exchange, the withdrawal limit has now been reduced from 2 BTC (~$80,000) based on prices at the time of writing to 0.06 BTC (~$2,400).
The reduced adjustment is effective immediately for new accounts registered with the trading platform while existing accounts will have grace until August 4 before the new limit is implemented.
According to Binance, customers who have completed their KYC will still be able to access up to 100 BTC withdrawal limits per day.
Binance Seeking to Become a Regulated Exchange
As the regulatory climate hanging over Binance thickens, Founder and Chief Executive Officer, Changpeng Zhao ‘CZ’ has reiterated plans to work with regulators to get the trading platform to be a regulated entity.
In order to achieve this major goal, CZ per an earlier Coinspeaker report said he is willing to step down from his role, provided there is a candidate with more regulatory experience. Additionally, Zhao noted the exchange will begin establishing regional headquarters in key regions in order to address the regulator’s concerns about its lack of a notable head office.