With tax season on the horizon for many nations, companies in the cryptocurrency industry will need to be ready to help their clients comply with the current requirements in those countries.

Cryptocurrency exchange Binance made the announcement on Feb. 6 that it would be developing a tax reporting tool to help clients keep track of their cryptocurrency transactions for the purpose of filing tax returns.

According to the statement, Binance Tax provides its clients with the ability to receive a tax summary report detailing any gains or losses that have taken place on their Binance account over the course of the year. This includes contributions made in cryptocurrency, spot transactions, and fork prizes that are based on blockchain technology.

According to the corporation, this decision was made in response to a growing number of inquiries received from consumers about their respective tax responsibilities.

France and Canada are currently participating in the Binance Tax pilot program, which will be rolled out to more areas of the world within the Binance ecosystem later this year.

At the moment, it can only be used to access data that is stored on platforms owned and operated by Binance; however, the company has said that it intends to grow and eventually interact with other platforms used in the sector.

This follows the announcement made by Binance a month ago about its participation in a partnership to ensure compliance with sanctions around the world.

Over the course of the last year, global authorities have increased the pressure they apply to the cryptocurrency business. This is especially true in the wake of the FTX crisis, which rocked the market.

The Securities and Exchange Commission of Thailand recently announced that it intends to tighten regulations for the cryptocurrency business with a primary emphasis on investor safety. The query exchanges have been under investigation by regulators in South Korea and the Netherlands for alleged breaches of local rules.

The cryptocurrency industry has also drawn the attention of US regulators. Compliance issues led to a deal to be reached between bitcoin exchange Kraken and the Office of Foreign Assets Control within the Treasury Department.

The United States Securities and Exchange Commission issued a call to companies in December 2022, requesting that they report their crypto bankruptcy exposure and risks. Meanwhile, the head of a House committee on crypto innovation has introduced a measure that would allow companies to apply to government agencies for what is called an “enforceable compliance agreement.”