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Binance Australia partners with Koinly for tax reports as ATO ramps up compliance

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The Australian branch of leading cryptocurrency exchange Binance has increased the ability for users to accurately report tax liabilities amidst increased pressure from local tax authorities.

Binance has partnered with cryptocurrency tax startup Koinly to assist users grappling with ever-increasing tax obligations down under. Binance users in Australia have been offered access to Koinly’s tax reporting solution through the integration.

Koinly was founded in 2018 and supports 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) increases its effort to collect taxes on cryptocurrency gains. In July last year, the ATO targeted 350,000 crypto asset investors and holders with a letter regarding undeclared cryptocurrency gains.

In May 2021, 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 people expected to be prompted to do so as they lodge their returns. It estimated that there are over 600,000 taxpayers that have invested in crypto-assets in recent years. The ATO uses data matching with exchanges to identify users who may have tax bills.

In an announcement shared with Cointelegraph, Koinly founder Robin Singh explained:

“The ATO is 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 is also increasing its educational efforts down under by hosting an end of financial year tax masterclass in collaboration with Koinly on July 22.

Related: Two-fifths of Aussie millennials think crypto investments beat real estate

Sam Teoh, of Binance Australia, stated that the crypto community has voiced their concern around tax compliance, adding “with approximately one in six Australians investing in crypto, taxpayers and tax agents alike are on a steep learning curve.”

Australians are not the only ones coming under the watchful eye of the taxman. In late May, the U.S. Treasury proposed crypto transactions over $10,000 be reported to the Internal Revenue Service.



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‘Nakamoto’s innovation is real,’ says SEC Chair Gary Gensler

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Gary Gensler, the Chair of the United States Securities and Exchange Commission, or SEC, believes that the blockchain revolution started by Satoshi Nakamoto in 2008 is more than just a fad, but a real value proposition for the future of the internet. 

In an interview with the Aspen Security Forum on Tuesday, Gesler talked about his role at the Massachusetts Institute of Technology teaching about the intersection of finance and technology:

“[…] in that work I came to believe that though there was a lot of hype masquerading as reality in the crypto field, Nakamoto’s innovation is real.”

Gensler noted that, while some within the public sector wish that cryptocurrency would just go away, the technology likely has a big role to play in the future of finance.

“I really do think there’s something real about the distributed ledger technology, moving value on the internet,” he said.

Related: Today marks the 10-year anniversary of Satoshi Nakamoto’s final message

Some within the crypto community took Gensler’s comments to mean that he’s studied the entire field of blockchain and concluded that Bitcoin is the only real innovation. A transcript of Gensler’s address to the Aspen Security Forum appeared to be hyper-focused on the Bitcoin (BTC) whitepaper published by Satoshi Nakamoto more than a decade ago.

“At its core, Nakamoto was trying to create a private form of money with no central intermediary, such as a central bank or commercial banks,” Gensler said in his remarks. Although he acknowledged that no single cryptocurrency broadly fulfills all the functions of public monies like the dollar, he said assets like Bitcoin provide a different value proposition:

“Primarily, crypto assets provide digital, scarce vehicles for speculative investment. Thus, in that sense, one can say they are highly speculative stores of value.”

After being confirmed by the Senate Banking Committee in April of this year, Gensler assumed the role as SEC Chair in June, replacing the outgoing Jay Clayton, whose term expired the same month. Gensler’s five-year term is scheduled to last through 2026. He believes in creating a “robust” regulatory framework for cryptocurrencies in the United States, especially in emerging DeFi markets such as lending.

Related: SEC Chair wants robust crypto regulatory regime for the US