Binance, Exchanges

Is Binance Reporting to IRS?

Binance, one of the world’s largest cryptocurrency exchanges, is reportedly facing scrutiny from the US Internal Revenue Service (IRS).

According to a report from Bloomberg, the IRS is investigating whether or not Binance has been properly reporting US-based users’ trading activity and whether or not it has been paying proper taxes on that activity.

The report cites “people familiar with the matter” and says that the investigation is in its early stages. It is not clear how long the investigation has been going on or what specific activities the IRS is looking into.

Binance has not been shy about its expansion into the US market, despite the regulatory uncertainty surrounding cryptocurrency exchanges in the country.

In June, Binance announced that it had launched a new US-based exchange, Binance US, in partnership with a firm called fintech startup RaiBlocks. The exchange is available to users in more than 40 states.

And just last week, Binance announced that it had acquired a controlling stake in a US-based cryptocurrency startup called Trust Token. The deal gives Binance a majority share of Trust Token’s native token, called TrueUSD.

The news of the IRS investigation comes as Binance is facing increased scrutiny from regulators around the world. Earlier this month, Japanese regulators ordered Binance to stop operating in the country because it does not have proper licensing to do so.

And last week, the Malta Financial Services Authority warned Binance that it could face “ enforcement action” if it does not comply with Maltese lAWS.

It is unclear how the IRS investigation will impact Binance’s operations in the US. The exchange has not yet responded to Bloomberg’s request for comment on the matter.

Previous ArticleNext Article