Does Binance Report to the ATO?

Have you traded on Binance in Australia? The ATO likely knows more about your transactions than you realise. Learn how and what Binance reports to the ATO.

Is Binance legal in Australia?

Yes, Binance is registered with AUSTRAC (Australian Transaction Reports and Analysis Centre), so Australian investors can use the platform. However, there are some notable limitations regarding fiat on/off ramp options with Binance. Investors cannot deposit or withdraw AUD onto the platform and will instead need to transfer in crypto funds like USDT to trade.

As well as this, the Australian Securities and Investments Commission cancelled the Australian financial services license held by Binance Australia Derivatives in 2023.

Read next: Best Australian Exchanges

Does Binance report to the ATO?

Yes, Binance may report to the ATO. As a crypto asset designated service provider operating in Australia, Binance is likely part of the ATO’s data sharing program.

This program allows the ATO to request and collect data from crypto exchanges like Binance ot ensure Australian investors are reporting their crypto profits accurately.

What does Binance report to the ATO?

The ATO negotiates with selected data providers on the information shared, so it’s not known exactly what information Binance may share with the ATO. However, the ATO states that personal data shared may include:

• Name(s)

• D.O.B

• Address(es)

• Australian business number (if applicable)

• Email address(es)

• Phone number(s)

• Social media account(s)

• Identity verification document details

• Registration IP address

• User ID

As well as this, the ATO may collect data about your specific transactions on Binance, including:

• Linked bank account details

• Associated wallet address(es) 

• Transaction IDs, dates, times, assets, and values

• Account balances in fiat and crypto

• Transfers and descriptions

• IP address(es)

Read next: Can the ATO track crypto?

What does the ATO do with the information Binance provides?

The ATO uses the data provided by exchanges to ensure Australian investors are reporting their crypto investments correctly. The ATO may use the information to:

• Identify and inform investors of their tax obligations

• Prompt specific investors about their reporting obligations while completing their tax returns online

• Compare their records from tax returns against data shared by exchanges

How do I report my Binance taxes to the ATO?

You need to report any gains, losses, or income from Binance to the ATO by October 31st each year as part of your annual lodgement. Gains and losses are reported in the Tax Return for Individuals (Supplementary Section - NAT 2679), while income is reported in the Tax Return for Individuals (NAT 2541). You can also avoid paper forms and do this via the ATO myTax portal.

Binance does not provide Australian investors with any tax forms. As such, the easiest way to report your Binance taxes to the ATO is with a crypto tax calculator like Koinly. 

Read next: Australian Crypto Tax Guide

Report your Binance taxes with Koinly

Koinly makes reporting your Binance transactions to the ATO simple. Just import your transaction data automatically via API or upload a CSV file. 

Once Koinly has your data, it’ll calculate your gains, losses, income, and more, before generating your myTax report (and others), ready to help you file with the ATO. Learn more about how to do your Binance taxes with Koinly.