Cryptocurrency exchange Binance has announced the launch of a tax reporting tool that will enable its users to track crypto activities and simplify their reporting requirements.

Changpeng Zhao, CEO of Binance, said:

The truth is that in many countries around the world, crypto regulations are still evolving and we are all discovering the right path for this promising, young and exciting industry.

The new tool allows users to transfer their transaction history to a third party, as well as get an overview of their tax obligations.

Although the tool will help users, it also comes at a time when Binance is under fire from regulators across the world.

In recent weeks and months, CZ has focused its efforts on proving that Binance takes compliance and regulatory obligations seriously.

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CZ said on July 7:

I believe that a well-developed legal and regulatory framework in the long run will be a solid foundation that makes crypto essential in everyone’s daily life.

He added:

The broader adoption of cryptocurrencies globally illustrates the need for clearer regulatory frameworks in different countries.

Despite the clever rhetoric from CZ, key questions about Binance remain.

Binance’s Difficult Relationship with the Regulators:

Binance’s history has been full of regulatory controversy.

Last year, authorities in Malaysia said Binance was operating illegally in their jurisdictions.

The announcement came several months after Malta ended its affair with cryptocurrency exchange Binance as well.

But this year, regulators have increased pressure on Binance, specifically targeting Binance’s insistence that it is “decentralized” and operates without a headquarters.

Over the past two months, all regulators in the UK, Italy, Japan and the Cayman Islands have said Binance is not authorized to operate in their jurisdictions.

The UK’s Financial Conduct Authority has told Binance that Binance has significant regulatory problems due to its apparent lack of compliance and particularly the lack of a head office.

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It also said that Binance Markets Limited, a British entity set up to run Binance in the country, was unaware of its anti-money laundering obligations.

An FCA spokesperson added:

Combining the above, we find that Binance has standards compliance issues in the crypto space.

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