The Australian subsidiary of the leading cryptocurrency exchange Binance has increased the ability for users to accurately report tax liabilities amidst increased pressure from financial regulators. Binance Australia has partnered with cryptocurrency tax startup Koinly to assist users grappling with complicated tax obligations in the country. Binance users in Australia have been offered access to Koinly’s tax reporting solution through the integration.
Koinly allows users to sync their full crypto trading history with the ATO-compliant platform.
Koinly was founded in 2018 and supported over 600 exchanges and wallets, enabling users to sync their full crypto trading history with one central ATO-compliant platform. The move comes as the Australian Tax Office (ATO) is increasing its effort to collect taxes on cryptocurrency gains. In July 2020, the ATO targeted 350,000 crypto asset investors and holders with a letter regarding undeclared cryptocurrency gains. Earlier this year, the ATO doubled down with its efforts, reminding 100,000 Australian crypto users to report all gains on their tax returns — with a further 300,000 Australians expected to be prompted to do so as they file their returns.
Over 600,000 taxpayers have invested in crypto assets in recent years.
It is estimated that there are over 600,000 Australian taxpayers have invested in crypto assets in recent years. The ATO uses data matching with crypto exchanges to identify users who may have tax bills. Koinly founder Robin Singh revealed that the ATO has been collecting bulk records data from Australian crypto exchanges and comparing it to amounts entered on previous tax returns. Failure to declare crypto gains can attract a penalty of 75% of the outstanding tax liability. Binance recently suspended its stock token services amid regulatory pushback.