According to a statement made yesterday, Binance is developing a Tax Reporting Tool that will allow customers to “keep track of their crypto activity and expedite reporting procedures.”
“The fact is that crypto rules are still evolving in many countries around the world, and we are all discovering the appropriate way for this ambitious, new, and exciting industry,” stated Binance CEO Changpeng Zhao (“CZ”).
Users can now send their transaction history to a third party and get an overview of their tax responsibilities with the new tool. Though the feature will benefit users, it comes at a time when the exchange has been criticized by regulators around the world.
CZ has been focused his efforts in recent weeks and months on demonstrating that Binance takes compliance and regulatory requirements seriously.
“I believe that, in the long run, a well-developed legal and regulatory framework will be a solid foundation that will actually make crypto crucial in everyone’s daily life,” CZ stated on July 7. He went on to say that the growing global popularity of cryptocurrency highlights the need for “clearer regulatory frameworks in various countries.”
Regardless of the hyperbole, key issues concerning Binance remain unanswered.
The tumultuous relationship between Binance and authorities
The history of Binance is plagued with regulatory controversies.
Authorities in Malaysia alleged last year that Binance was operating illegally in the country. The news comes many months after Malta discontinued its relationship with the cryptocurrency exchange.
Regulators have increased their pressure on Binance this year, focusing on the exchange’s claim that it is “decentralized” and runs without a headquarters.
Regulators in the United Kingdom, Italy, Japan, and the Cayman Islands have all stated that Binance is not permitted to function in their respective jurisdictions during the last two months.
The Financial Conduct Authority in the United Kingdom informed Decrypt that the exchange’s apparent absence of a headquarters is a “major issue.” Binance Markets Limited, a UK corporation set up to manage a Binance exchange in the nation, was also found to be behind on its anti-money laundering responsibilities, according to the report.
The FCA spokeswoman continued, “Putting two and two together, we certainly have difficulties with standards in that sector.”