The Binance arm in Australia has partnered with Koinly to help their users comply with the tax regulations of the Australian Tax Office. With this integration, Binance users in Australia can seamlessly report or pay their taxes.
The Australian Tax Office has always been making efforts to ensure that cryptocurrency exchanges remit taxes from their gains. According to them, cryptocurrency gains are as taxable as any other investments.
Mr Tim Loh, the Assistant Commissioner of the Australian Tax Office, said on May 28th this year: “some taxpayers think that the anonymity of cryptocurrencies provides a licence to ignore their tax obligations we closely track where it interacts with the real world through data from relevant sources to trace the money to the taxpayer.”
According to Robin Singh, the authorities have directed exchanges to declare and remit accurate gains. Otherwise, they will face the penalty of 75% of their outstanding tax liabilities.
Having said that, a lot of cryptocurrency stakeholders have commended this move by the Binance Australia. From a regulatory standpoint, it’s a progress compared to how Binance is having issues with the laws in some countries.
Koinly is an Australia-based company that provides tax solutions to cryptocurrency tax solutions to exchanges. So far, they claimed to have filed more than 11,000 tax reports, and tracked $250 million funds.