Binance is launching a new tax reporting tool to assist the exchange with the compliance requirements as we are reading more in our latest Binance news today.
The crypto exchange Binance is launching a Tax reporting tool that will enable users to keep track of crypto activities and streamline reporting requirements according to a statement released a day ago. Changpeng Zhao, the CEO of Binance said:
“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.”
The new tool allows users to transfer transaction history to a third party and to obtain an overview of the tax liabilities. The tool will help users but it also came in a time when the exchange is getting under a lot of pressure and scrutiny from regulators worldwide. In the past few weeks and months, CZ was focusing its efforts on demonstrating that Binance is taking compliance and regulatory obligations seriously:
“I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life.”
CZ added that the wider adoption of crypto globally shows the need for a clearer regulatory framework in different countries. Despite his rhetoric, questions about the exchange continue to linger. It is known that this exchange had a difficult relationship with regulators and its history has been swamped with regulatory controversy. A year ago, authorities in Malaysia said that Binance was illegally operating in the jurisdiction and the announcement came a few months after Malta ended its relationship with the exchange. This year, regulators turned the pressure on Binance again and targeted the exchange’s insistence that it is decentralized and doesn’t have headquarters. In two months, regulators in the UK, Japan, Italy, and the Cayman Islands all said that binance is not authorized to operate in their jurisdictions.
The UK’s Financial Conduct Authority said that it has a huge issue with the lack of headquarters of the exchange and noted that Binance Markets Limited which is a UK entity put in place to run an exchange in the country, was not up to speed with the AML obligations:
“Putting two and two together, we obviously have issues with standards in that area.”
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