Binance Halts USD Deposits and Withdrawals
- Binance said only 0.01% of its users made use of USD transfers.
- The exchange did not say when or if USD transfers would be restored.
- Binance on Monday announced the launch of a tax tool for users in Canada and France.
Cryptocurrency exchange Binance has announced plans to halt USD withdrawals and deposits from Wednesday, February 8th. A Binance spokesperson noted that USD transfers were used by only 0.01% of monthly active users. Binance added that “affected customers are being notified directly.”
Giving more details about the decision, the spokesperson said,
In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance (including euros), buying and selling crypto via credit card, debit card, Google Pay and Apple Pay and via our Binance P2P marketplace.
The news comes shortly after Binance announced that it had launched a tool to assist users in calculating the tax responsibilities on their cryptocurrency, as authorities are looking to cash out from the crypto space.
The new tax tool is initially only accessible to users in France and Canada and supports the reporting of up to 100,000 transactions. In a blog post on Monday, the exchange stated that it intends to expand to other areas .Binance also noted that the tool is in response to an increase in user questions concerning their tax obligations.
Binance said on Monday,
In one click, you can now import your Binance transactions into our calculator and obtain a simple yet comprehensive estimate of your tax obligations depending on your jurisdiction.
The statement states that customers can get a tax summary report from Binance Tax that contains any gains or losses that have occurred in their accounts throughout the year. This includes cryptocurrency donations, spot trades, and incentives from blockchain-based forks.
Calculating yearly losses and gains for users that trade frequently may amount to thousands of transactions, which would require numerous hours of work to maintain accuracy. The product is still in its infancy and does not yet support all kinds of transactions.
In recent months, a number of nations have adopted stricter regulations on the taxation of digital assets. Italy introduced a 26% tax on cryptocurrency trading gains over 2,000 euros ($2,160) at the end of 2022. India, however, strengthened its crypto tax laws last month by introducing a provision that could result in 84 months in prison for failure to comply with reporting obligations.
Meanwhile, global regulators have increased their oversight over the crypto sector since the FTX crisis that rattled the sector. The Securities and Exchange Commission in Thailand recently declared its intention to tighten regulations for the crypto market with an emphasis on investor protection.
Additionally, exchanges have been the focus of regulatory investigations for non-compliance with regional norms in both South Korea and the Netherlands. US regulators are also interested in the crypto ecosystem. For example, the US Securities and Exchange Commission and other agencies are calling for increased controls over the sector. It is only a matter of time before lawmakers release a uniform policy for the industry.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
