Posted 1 year ago | by Ben Armstrong
Binance US Partners with Sovos to Comply with Crypto Tax
Binance US has announced its partnership with Sovos, a startup company focusing on cryptocurrency accounting and auditing, to modernize tax information reporting by the Binance US platform, benefiting its users on the upcoming tax season.
Binance US is constantly expanding its services and providing its users with better benefits. To take advantage of this partnership and facilitate your next tax filling process while taking your crypto trading to the next level, make sure to click here.
Binance US Will use Sovos’ Technology to Automate Its 1099 Forms and Fillings
To reduce potential human errors and ensure automatic regulatory updates, the US arm of Binance will use Sovos’ technology to automate its 1099 forms and filings.
Sovos’ Tax Information Reporting solution, which has experience in handling tax issues in other currency markets, will allow Binance US to protect users as well as investors of other asset classes.
When talking about this new collaboration, Joshua Sroge, interim CFO of Binance US, said:
“The reporting obligations for cryptocurrency continue to evolve at a breakneck pace, often lacking clear guidance from regulatory authorities. By implementing Sovos, Binance.US can be assured of always having the latest changes pushed to us through an automated platform.”
Paul Banker, the general manager of Tax and Regulatory Reporting at Sovos, said in regards to the current regulatory state of the crypto ecosystem:
“As the rules and regulations around cryptocurrency tax reporting remain unsettled, the Sovos regulatory team continues to be at the forefront of changes, so we can help platforms like Binance.US quickly adjust to the reporting requirements and stay compliant.”
Binance US was Born to Fulfil Customer Needs
In 2019, Binance entered the US market through the partnership with BAM Trading Services, a FinCEN-registered company.
This partnership was born to launch a new Binance platform exclusively for citizens and residents in the United States, with Binance giving its US partner the license of its matching engine and wallet technologies to handle operations in compliance with local regulations.
Recently, Binance US has added an over-the-counter (OTC) trading portal allowing transactions using various crypto and fiat pairs.
The partnership of the exchange and Sovos would fulfill the reporting needs of customers in the upcoming tax season by providing the sources required by accounting professionals who service crypto-transacting clients.
US Regulators are Making a Great Fuss on Crypto Taxes
There has been an increase in reports of tax authorities that are clinging and looking closer at cryptocurrency traders.
The US Internal Revenue Service (IRS) has sent messages to taxpayers, who have yet to report their income and pay the resulting tax from cryptocurrency transactions.
The IRS still considers crypto assets as property instead of currency for income tax purposes, which means the authority will keep taxing crypto profits and losses at capital gains rates.
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