In today’s connected world, financial transparency is the norm. For Binance, the big question is:
Does Binance report to tax authorities?
With the Common Reporting Standard (CRS) in place, Binance is expected to share data with tax authorities globally.
But what does this mean for you? What financial data is being shared? How does CRS reporting work, and could it impact your tax obligations?
In this article, we’ll explore Binance’s CRS reporting responsibilities and what they mean for financial privacy, helping you stay informed and compliant.
What is CRS Reporting?
The Common Reporting Standard (CRS) is a system created by governments worldwide to help fight tax evasion (prevent people from hiding money in foreign accounts to avoid paying taxes). Simply put, it requires financial institutions to share information about their customers’ accounts with tax authorities on an annual basis.
Here’s how it works:
- Binance collects your information: When you open an account, you must provide your name, address, and tax ID. It also collects your year-end account balance (December 31st), gross proceeds from all sales, interest income, dividend income, and other income;
- Information is shared with relevant tax authorities: For instance, EU residents open an account through Binance Europe Services, which is registered and regulated in Malta. So, this information is shared with Malta, which then shares it with your country.
Please note you don’t need to take any action yourself since everything is handled by Binance (and the tax authorities).
Does Binance participate in CRS reporting?
Yes, it should participate in the CRS Reporting since it operates through Malta, a country that adheres to CRS reporting. So, Binance’s subsidiaries are subject to it, namely: “Binance Europe Services”.
We have directly contacted customer support, and their response confirmed this
Other Binance subsidiaries compliant with CRS are the following:
- Binance U.S. (BAM Trading Services Inc.);
- Binance Singapore (Binance Asia Services Pte. Ltd.);
- Binance Australia (Binance Australia Pty Ltd);
- Binance Turkey (BN Teknoloji A.Ş.);
- Binance Korea (Binance Co., Ltd.);
- Binance India;
- Binance Brazil.
What information does Binance report?
Binance does not “choose” what information to share. According to CRS regulations, it must provide:
- Account number;
- Name;
- Full address;
- Date of birth;
- Tax ID Number;
- Tax residency country;
- Year-end account balance;
- Gross proceeds from all sales, interest income, dividend income, and other income.
Where can I get my CRS in Binance?
You cannot get access to the CRS in Binance. We contacted customer support to be 100% sure, and their response confirmed it:
Still, there are other platforms like Interactive Brokers that allow you to access your CRS:
Which countries are affected?
Over 100 countries are involved in cooperating for higher transparency standards, including all European Union (EU) countries, China, India, and Hong Kong.
The United States is a notable exception. It is not included in the CRS ecosystem. Instead, it actively controls its citizens’ foreign financial assets through the Foreign Account Tax Compliance Act (FATCA), which requires that foreign financial Institutions report on the foreign assets held by their U.S. account holders.
How CRS reporting differs from FATCA (for US users)
We have detailed a comparison side by side to help you understand the differences:
| Information | CRS | FATCA |
| Who created it? | Developed by the OECD | Enacted by the US government under the IRS |
| Who does it apply to? | Applies to residents of over 100 participating countries (excluding the US) | Applies to US citizens, US residents, and certain non-US entities with US ownership |
| Purpose | To prevent global tax evasion by requiring financial institutions to share account information with tax authorities | To prevent US taxpayers from hiding assets and income in foreign financial institutions |
| Which information is shared? | Account holder’s name, address, account balance, income, and tax residency status | Similar information as CRS: account balances, income, and US taxpayer identification |
| Who receives the data? | Tax authorities of the account holder’s country of tax residence | The IRS receives data directly from foreign financial institutions |
| Which financial institutions must report? | Financial institutions in participating CRS countries | Foreign financial institutions dealing with U.S. persons |
How to file your Binance taxes
Every year, you need to declare any crypto earnings of the previous year. Your investments may generate income (Staking, Yield Farming,…) or capital gains and losses (selling crypto).
How does CRS reporting affect Binance Corporate accounts?
CRS reporting applies not only to personal (individual) accounts but also to business accounts held with Binance. It should report information on business accounts when the account holders or controlling persons (like company owners) are tax residents of countries participating in CRS.
Here’s how CRS reporting affects Binance business accounts:
- Collection of business information: Binance collects relevant information when a business account is opened. This includes details of the business, its country of incorporation, and the tax residency of the business and its owners.
- Reporting requirements: Binance is required to share information about business accounts with tax authorities in the same way it does for personal accounts. This includes data such as:
- Business name and identification details
- Account balances
- Transaction history
- Tax residency of the business and its controlling persons (owners, shareholders, etc.)
- Impact on global businesses: If a business operates internationally or has owners in different countries, the tax residency of the business and its controlling persons will determine where and how the information is reported under CRS.
- Impact on global businesses: If a business operates internationally or has owners in different countries, the tax residency of the business and its controlling persons will determine where and how the information is reported under CRS.
Bottom line
All in all, Binance does report to tax authorities under the Common Reporting Standard (CRS). This applies to both personal and business accounts held by users who are tax residents of participating countries.
CRS reporting ensures that financial institutions like Binance share relevant account information with local tax authorities, helping to prevent tax evasion.
Do you have any questions? Feel free to reach out to us!
