Binance is not just a crypto exchange, but it is an ecosystem of tools that enables crypto investors and traders to find success in this fast-moving industry.
Binance tax is the latest addition by the Binance team, which will enable Binance users from Two countries to calculate crypto taxation without paying a dime. However, this is a new product by Binance and may or may not be ideal for every crypto user.
Read on to learn what we know about Binance tax and some alternatives you should know about.
- Binance tax is a new tool launched by the Binance team to help you calculate your tax liabilities for free.
- This tool is available only for Binance users from Canada and France when writing this.
- You can calculate your tax liability of up to 100k transactions.
- Generate Tax reports within minutes.
- Works only for transactions done on the Binance account. They might add support for other platforms in the future.
- Binance Tax does not support certain Binance products such as Futures and NFT.
What do we think about the Binance tax tool?
Taxation is one of the biggest headaches when it comes to dealing with any sort of financial products, and crypto is no different. Many users use Binance as their only crypto exchange, and having an in-built crypto taxation tool and report generation tool will save a ton of time.
At the time of writing, the Binance tax tool supports transactions of up to 100K, which should be ideal for any basic or even power users. This is a pilot launch of the tool, and if Binance continues adding more features, it will not only help the end users but will make many crypto users use only Binance exchange for transactions.
There are a few considerable limitations of the Binance tax tool at this moment –
- Binance futures and NFTs are not covered in this tax tool.
- Transaction limit of 100K, which may not be ideal for power grid bot users or scalp traders.
- Works only for the transactions done on the Binance exchange. If you use a private wallet for DeFi transactions, you must use a companion tax tool.
- Available only for users from Canada and France.
These limitations may be fixed as the Binance team continue developing this tool. Here are a few alternatives to the Binance Tax tool that you can use if you are using more exchanges and private wallets or if you reside outside France or Canada.
Note – This above-mentioned tax tool supports multiple exchanges, including Binance and also private wallets such as Metamask, Trust Wallet, and Ledger to name a few.
If you are a user of Binance and from Canada or France, I would love to hear your feedback and experience of using Binance tax tool. What are the features that you liked or the one that you think they should integrate in the time to come?