Crypto tax reporting is unarguably not an easy task for many cryptocurrency investors. However, three digital currency exchanges have reached a new partnership to simplify the process of calculating such taxes for Australian users. The development follows the recent clampdown by the Australian Tax Office (ATO) on local investors.
Aussie exchanges simplify crypto tax reporting with Koinly
Per the announcement on Wednesday, three Australian exchanges, namely CoinJar, Cointree, and Swyftx, joined forces with Koinly to lower down the tedious process for crypto tax reporting in Australia. Koinly is a digital currency tax software provider on the mission to facilitate timely tax reports for Australian investors.
To achieve this, the exchanges will connect public wallet addresses and accounts with the tax software. By doing so, investors or customers are able to pull detailed capital gains reports within a short period. Perhaps, this boycotts the need for Aussie investors to engage in the rigorous process in preparation for tax reports.
Warning letters to 350,000 local investors
Speaking on the complexity of crypto tax reporting amongst investors, the founder of Koinly, Robin Singh, said:
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.
In June, about 350,000 digital currency investors in Australia were issued a warning in the form of a letter from ATO. The tax agency disclosed that they are aware of cryptocurrency activities in the country and required that all the investors should begin crypto tax reporting accordingly.
Now, Australian investors are being provided with an option to file the tax report in an efficient manner.