On Wednesday, Binance, the world’s biggest cryptocurrency exchange, has made a tax reporting tool that would help users track their crypto activities and tax reporting needs.
The Tax Reporting Tool allows users to transfer their transactions history of Binance to third party tax vendors. According to accountants, for the compliance with taxation laws to be easy. The tool also provides its users with details of the liabilities of local tax real-time. During the time when Binance was faced with regulatory scrutiny over the suspected use of the platform for money laundering and offences in relation to taxation, the tool was then developed.
Withdrawal and Leverage Limits
On the other hand, Binance declared that its new tool is part of a wider strategy to increase protection for users and risk management protocols. The platform revised it’s daily withdrawal limits. Therefore it updated its leverage limits to lessen risks to its users for their future accounts.
Withdrawal limits is adjusted to 0.06 BTC for the accounts that have only Basic Account Verification completion. This effectively change registration of new accounts immediately. It will be effective for currents users from 2021-08-04 00:00 AM (UTC) and completed by 2021-08-23 00:00 AM (UTC).
For leverage limits, its levels of over 20x will not be available to accounts in the future within the initial 60 days of their opening. It will also be immediately effective. A leverage limit of a maximum of 20x was applied for new accounts opened within 30 days. This follows the updates on 2021-07-19 (UTC). The increase of leverage limits for new accounts will progress only after 60 days from opening.
The owner of the fourth-biggest cryptocurrency Binance Coin, provides cryptocurrency spot and derivatives trading to its customers all over the world. Its exchange allows direct trading among users. However, some of the UK’s, Germany’s, and Japan’s financial authorities and regulators have escalated concerns about the involved risks. The British financial watchdog recently stopped the platform from bringing out regulated activities. On Wednesday, a Reuters report cited CEO and Binance Founder, Changpeng Zhao stating that he desired to have a better relationship with regulators.
Crypto regulations are still growing in several countries, and everyone is realizing the correct route for this new platform. This was according to the Binance CEO. He also added that the team is working hard to place with growing regulatory standards. It is by taking a variety of measures such as updating safeguards and introducing new products like the Tax Reporting Tool.
The tool will be accessible to the Binance users via “Account” and “API Management” on the Binance website. It is also accessible in the Binance App as per the company. In line with the releasing of the tool, a step-by-step guide is provided to assist its users.
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