Cryptocurrency startup Koinly, working in the tax field, has announced a partnership with Australian exchanges Coinjar, Cointree and Swyftx to simplify tax reporting for traders.
The founder of Koinly, Robin Singh, said that the trading data of customers who make transactions on these cryptocurrency exchanges will be automatically transmitted to Koinly as a CSV file or via the API. Traders will also have access to detailed reports on their capital growth. The information will be transmitted to the Australian taxation office (ATO) data comparison Protocol. This Protocol is used to identify buyers and sellers of crypto assets, as well as to identify individuals who do not meet the requirements for tax reporting.
Singh explained that despite the huge amount of information on taxes, it is difficult for traders to calculate them manually, especially if users trade on multiple exchanges. The head of Koinly said that he began negotiating with the Australian cryptocurrency exchanges after the ATO sent notifications in March to 350,000 citizens who have been trading digital assets for the past few years, requiring them to submit income declarations. Many traders still don’t realize that cryptocurrency transactions involve tax obligations, Singh added.
“In recent months, we have seen a sharp increase in Australian users on our platform. Many of them are traded on exchanges, Coinjar, Cointree and Swyftx. The number of traders interested in tax matters is constantly growing. Partnership with these exchanges will eliminate the difficulties with regulating the cryptocurrency industry and simplify the preparation of tax returns for traders. Now they will be able to focus only on trading, without getting involved in the subtleties of “tax hell,” Singh said.
Recall that in March 2018, the Australian government updated the guide to taxation of cryptocurrencies. In addition, in the spring of last year, the ATO announced its intention to monitor cryptocurrency transactions of citizens to identify unscrupulous taxpayers.