Australian Tax Office has called cryptocurrency investors to send reports about their crypto earnings. Major crypto exchanges in the country, Coinjar, Cointree, and Swyftx have decided to partner with a leading crypto tax solution provider, Koinly, to offer more straightforward tax reporting to their traders.
Koinly offers the fundamental tools needed to report crypto taxes. Traders can connect their exchange accounts with public wallet addresses to get a straightforward report about their crypto earnings.
Coinjar is one of the biggest crypto exchanges in Australia that decided to implement Koinly tools to provide more comfortable data gathering and reporting for its users.
“If you trade or invest with any regularity, compiling transaction records into a single ATO-friendly document can still present challenges, especially if you’re operating across a number of wallets and cryptocurrencies. That’s why for this tax season, we have officially partnered with Koinly to implement direct connectivity to your CoinJar account. This means if you choose to link both accounts, your trading data from your CoinJar will be seamlessly processed.” said Ashter Tan, CEO at Coinjar.
The real reason that convinced Australian crypto exchanges to integrate Koinly tools was a letter from ATO to more than 350,000 crypto traders in the country in June. The authorities have demanded investors to provide a clear report about their cryptocurrency activities.
Australian traders are not alone in receiving such letters and their counterparts in the UK, US and Denmark have received similar notifications. Anyway, cryptocurrency trading is on the rise, and many more regular investors are trying their chances in crypto exchanges. It is no surprise that tax authorities around the world are looking for a share of that profit.
The crypto traders who decide to provide a clear legal statement to tax authorities have some challenges like calculating the exact revenue from multiple exchanges.
“Even though there is a lot of guidance around cryptocurrency taxes, it is simply too difficult to calculate taxes by hand especially if you traded on multiple exchanges. With our new partnerships we will be able to help Australian investors reconcile all their transactions in one place and generate tax reports seamlessly” said Robin Singh, founder of Koinly.
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