Binance responds to regulators with a tool to facilitate the calculation of tax liability

According to the latest reports, Binance is launching a tax reporting tool that their customers can use to better track their business. They will then be able to export this data and, if necessary, use it to document their transactions and to calculate tax liability.

“The fact is that in many countries around the world, crypto regulation is still evolving and we are all discovering the right path for these promising, young and exciting industries.” said Changpeng Zhao, founder and CEO of Binance Exchange, who surprisingly said this week that he could step down as CEO of the company. He should be replaced in the future by a person who has extensive experience in communicating with regulators and is a true expert in this matter. Binance is reportedly already looking for such an expert.

The Binance cryptocurreny exchange has taken several steps in recent weeks, suggesting that it is trying to respond to criticism from regulators with steps they might like. In addition to the tax facilitation tool (it probably cannot be ruled out that Binance may share this information with the authorities at their request), it also reduced the limits for withdrawing BTC for unverified accounts from 2 BTC per day to only 0.06 BTC and also abolished the possibility of trading tokenized shares. Binance also temporarily suspended the possibility of EUR deposits via SEPA transfer, which was probably related to complications that arose after a series of warnings against its use by regulators from Great Britain, Japan, Italy or the Cayman Islands.

“I believe that a well-developed legal and regulatory framework in the long term will be a solid foundation that will truly make cryptocurrencies something inevitable in every single person’s life.” said Changpeng Zhao.