Cryptocurrency must be declared, Binance announces the launch of a tax reporting tool

The Internal Revenue Service (IRS) of the United States released the 2022 federal income tax filing and payment guidelines in January, requiring taxpayers to report "all income related to digital assets." With increasing regulatory scrutiny worldwide, cryptocurrency exchange Binance announced today the launch of a free tax reporting tool, Binance Tax, to assist users in tracking their cryptocurrency transactions for tax reporting purposes.

All Digital Assets Must Be Reported

As the U.S. tax season kicks off, the Internal Revenue Service (IRS) reminds taxpayers to answer the digital asset question again when filing their 2022 federal income tax returns and report all income related to digital assets. The article mentions that digital assets include: convertible virtual currencies and cryptocurrencies, stablecoins, and NFTs.

If taxpayers check the "yes" option, they must report all income related to their digital asset transactions, calculate their capital gains or losses in the transactions, and then present them in taxable income. If employees receive digital assets as compensation, they must also report the received asset value as income.

Free Binance Tax Feature

In response to regulatory and tax requirements in various countries, Binance today launched a free Binance Tax feature. According to the Binance announcement, Binance Tax allows users to download a tax summary report, which includes any gains or losses incurred throughout the year on their Binance account. This includes spot trading, crypto donations, and blockchain-based fork rewards.

Binance Tax is currently in a trial phase in France and Canada, and will later expand to other global markets within the Binance ecosystem in the latter half of this year. Currently, it is only applicable to information on the Binance platform, but Binance also stated that it will seek to integrate with other platforms in the industry in the future.