In its attempt to adjust its operation to appeal to heightening regulatory efforts, Binance, the most prominent cryptocurrency exchange, has rolled out the Tax Reporting Tool.
The new Tax Reporting Tool is a fulcrum of a broader scheme by Binance that’s geared towards the expansion of user protection and risk management protocols.
Besides the Tax Reporting Tool, the exchange is slashing the amount of Bitcoin withdrawals users can make. Binance, which is also the biggest exchange for Bitcoin in the world by volume, has now restricted its users to withdrawing no more than 0.06 BTC a day. This amount is for accounts who have only completed basic account verification.
EU-Inspired “Compulsory KYC Verification“
Binance is now asking customers to fully complete KYC verification. The lower 0.06 BTC withdrawal limit is for new accounts. Notably, the lower amount will be made effective for existing accounts in stages from now through August 23.
The previous limit for BTC withdrawals was two BTC, which amounts to roughly $80,000. The current 0.06 BTC limit equates to roughly $2,400. However, users who fully verify their account will have a daily withdrawal limit of 100 BTC.
Binance’s revisiting the KYC verification as a part of the new withdrawal policy could be considered in view of the latest move by the EU Commission’s push against crypto and money laundering. The EU Commission recently proposed a new recommendation that would impel service providers in the crypto industry to collect more information from users of cryptocurrency. The proposal is focused on making crypto-assets more traceable. The new proposal would do away with anonymous crypto wallets. It would also require people making a crypto transaction to include their account number, address, name, date of birth, and the recipient’s name.
What’s Binance New Tax Tool About?
The Tax Reporting Tool is an API tool that empowers Binance users to keep track of their various transactions. The tool’s goal is to help users make sure they are paying the proper taxes on their crypto trading. Therefore, users can transfer their transaction history, as well as capital losses and gains, to third-party tax vendor applications. Additionally, the new tool also allows a real-time overview of tax liabilities for the user’s region through integration with third-party tax vendor tools.
Binance users can access the new Tax Reporting Tool through “Account” > “API Management.” The tool can be found on the exchange’s website and in its app.
As of the time of publication, Binance Coin’s price was $311.11 with a 24-hour trading volume of $1,451,509,895. BNB price also fell 0.5% over the last 24 hours. Besides, it has a circulating supply of 154.5 million BNB coins and a total supply of 171.5 million.
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