Home Cryptocurrency Binance cuts withdrawal limits, rolls out tax reporting tool

Binance cuts withdrawal limits, rolls out tax reporting tool

by Gordon James

In the cryptocurrency market, liquidity is everything. As cryptocurrency transactions aren’t instantaneous like fiat currencies, the system requires a steady stream of traders to participate in the market in order to sustain the value of tokens. Without this, prices go down and the cryptocurrency community will lose interest.

Binance, the world’s largest cryptocurrency exchange by volume, has announced that it will implement a new daily withdrawal limit of $100,000 for all users in its upcoming Binance Coin (BNB) blockchain. The new withdrawal limit will be implemented on November 22nd, which is also the day that Binance begins its Binance Chain mainnet.

The world’s largest cryptocurrency exchange has just made it easier for new users to withdraw funds from their accounts. Moreover, it also rolled out an automated tax reporting tool to help traders comply with tax authorities.. Read more about binance limits withdrawal and let us know what you think.

 

Binance, the world’s largest cryptocurrency exchange by trading volume, has introduced withdrawal restrictions and a new tax reporting mechanism as part of its ongoing attempts to maintain communication with global authorities.

The business made a substantial change to its Know Your Customer (KYC) rules on Tuesday, drastically lowering the maximum withdrawal amounts for customers who have not completed comprehensive identification verification.

Users who have completed just basic account verification will not be able to withdraw more than 0.06 Bitcoin (BTC) each day, valued approximately $2,400 at the time of writing, starting immediately for new Binance accounts. Binance CEO Changpeng Zhao remarked on Twitter that the highest daily withdrawal amount was previously limited at 2 BTC, or approximately $80,000.

Binance will continue to impose additional withdrawal restrictions to current customers in stages beginning August 4th, according to the statement. By Aug. 23, the exchange hopes to have fully implemented the new withdrawal limits. Binance customers who have passed full identity verification may still withdraw up to 100 BTC each day, which is almost $4 million at current BTC values. The notice states that “withdrawal restrictions update everyday at 00:00 AM.”

On Wednesday, Binance launched a new tax reporting tool. Binance customers may monitor their crypto transactions, transmit their transaction history to third-party vendors, and get quick overviews of their local tax obligations via the reporting system, which is an Application Programming Interface (API). The new effort is part of the exchange’s larger goal to improve user security and risk management.

As the exchange grows, Binance’s CEO wants to “engage with authorities.”

Users may now choose a third-party tax tool to transmit their transaction history, according to Binance’s tax reporting instructions website. “Binance does not recommend any specific third-party tax software. When choosing third-party tax tools, “please use your own judgment and/or contact your own tax advisor based on your particular tax circumstances and requirements,” the exchange said.

Binance did not reply to a request for information on how to utilize the new tool for Binance US users right away.

The revelation comes as Binance implements additional trading limitations in an apparent attempt to react to the exchange’s growing worldwide regulatory onslaught. Margin trading pairings for three fiat currencies, including the Euro, the Australian dollar, and the British pound sterling, were delisted by the exchange this week. The maximum leverage position on Binance’s futures trading platform has been reduced from 125x to 20x.

Binance CEO CZ also indicated on Tuesday that if someone “with a solid regulatory background” becomes available, he may be ready to stand aside. He said, “There are no imminent plans to replace me as CEO.”

Binance, the world’s largest cryptocurrency exchange by trading volume, has made a rather radical decision to roll out a new feature to its customers, and that is the option to have a Binance tax reporting tool. The announcement of the new tool was made on July 27th via Binance’s official Twitter account, and the announcement was accompanied by a satirical video, which… well, you’ll have to watch it to understand.. Read more about binance kyc limits and let us know what you think.

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