Binance Exchange Launches Free Tax Calculating Tool

The world’s largest cryptocurrency exchange by volume, Binance, has launched a tool to assist customers in calculating their tax requirements on their crypto transactions, as governments seek to ensure they do not lose money from the business.

The free tax tool, which supports reporting of up to 100,000 transactions, is first offered to customers in Canada and France. According to a blog post published on Monday, the exchange intends to expand to additional locations.

“While other platforms may charge hefty fees based on the number of transactions on your report, Binance offers users access to its advanced tax tool at no additional cost. Our system supports up to reportable 100,000 transactions, accommodating even the most prolific users of the Binance ecosystem,” according to Binance in the announcement.

Binance Tax’s goal is to make it easier to calculate gains and losses throughout the year. This might amount to thousands of transactions for regular traders, implying several hours of labor to assure precise computation. However, the product is still in its early stages and does not handle all forms of transactions. Users will need to make changes.

Binance said on their website:

“In one click, you can now import your Binance transactions into our calculator and obtain a simple yet comprehensive estimate of your tax obligations depending on your jurisdiction.”

In recent months, some governments have imposed stricter restrictions for the taxation of crypto assets. Italy imposed a 26% tax on crypto trading earnings over 2,000 euros ($2,160) at the end of last year. Meanwhile, India strengthened its crypto tax regulations last month, including a possibility for up to 84 months in jail for noncompliance with reporting obligations.