Tax crypto startup Koinly has announced partnerships with Australian exchanges Coinjar, Cointree and Swyftx to make tax reporting easier for traders.
Koinly founder Robin Singh said that the trading data of clients who make transactions on these cryptocurrency exchanges will be automatically transferred to Koinly as a CSV file or via an API. Traders will also have access to detailed reports on their capital growth. The information will be transferred to the Australian Tax Administration (ATO) data matching protocol. This protocol is used to identify buyers and sellers of cryptoassets, as well as to identify individuals who do not meet tax reporting requirements.
Singh explained that despite the wealth of information on taxes, it is difficult for traders to calculate them manually, especially if users trade on multiple exchanges. The Koinly chief said it began negotiating with Australian cryptocurrency exchanges after ATO sent notifications to 350,000 digital asset traders in March in March demanding income tax returns. Many traders still don’t realize that cryptocurrency transactions involve tax liabilities, Singh added.
“We have seen a dramatic increase in Australian users on our platform in recent months. Many of them trade on Coinjar, Cointree and Swyftx exchanges. The number of traders interested in tax issues is constantly growing. Partnerships with these exchanges will eliminate the complexities of regulating the cryptocurrency industry and make it easier for traders to file tax returns. Now they will be able to focus only on trade, without getting involved in the intricacies of “tax hell,” Singh said.
As a reminder, in March 2018, the Australian government updated its cryptocurrency taxation guidelines. In addition, in the spring of last year, ATO announced its intention to supervise the cryptocurrency transactions of citizens to identify unscrupulous taxpayers.