Recap has a comprehensive integration with Binance Smart Chain that makes it easy to manage your crypto tax calculations. Sign up for Recap and link your Binance Smart Chain wallet to securely monitor each transaction, manage your cryptocurrency portfolio, and effortlessly automate your taxes.
*Disclaimer: The information provided in this content does not endorse Binance Smart Chain. Furthermore, it does not constitute tax advice. If you are uncertain about any financial or tax-related matters, we strongly recommend seeking guidance from a qualified tax professional. Additionally, you may utilise our accountant and professional advisor sharing features.
What is Binance Smart Chain?
Binance Smart Chain (BSC) is a blockchain platform developed by Binance, designed to run parallel to Binance Chain and support decentralised applications (dApps) and smart contracts.
Launched in September 2020, BSC aims to provide a high-performance, low-cost infrastructure for developers and users in the cryptocurrency ecosystem.
Here's a breakdown of what Binance Smart Chain offers:
- Smart Contract Functionality: Supports the creation and execution of smart contracts, enabling developers to build and deploy decentralised applications (dApps) on the platform.
- Ethereum Compatibility: Fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to easily port their Ethereum-based dApps to BSC with minimal changes.
- High Performance: Offers faster transaction times and lower fees compared to the Ethereum network, thanks to its optimised consensus mechanism.
- Proof of Staked Authority (PoSA): Utilises a hybrid consensus mechanism combining delegated Proof of Stake (DPoS) and Proof of Authority (PoA) to achieve high throughput and short block times.
- Cross-Chain Compatibility: Supports interoperability with Binance Chain and other blockchains, facilitating seamless asset transfers and communication between different networks.
- Native Token (BNB): Uses Binance Coin (BNB) as its native cryptocurrency, which can be used to pay for transaction fees, participate in staking, and more.
How to automate your Binance Smart Chain crypto taxes with Recap
You can make the process of calculating your taxes stress-free with our crypto tax software. Connect your Binance Smart Chain wallet to Recap, and our system will classify and value all transactions using our unique fair-market valuation engine and determine your tax liability.
Auto Sync with Binance Smart Chain How are Binance Smart Chain Transactions Taxed?
Tax implications on your Binance Smart Chain transactions differ based on transaction types and your tax jurisdiction. Here are the tax guidelines for the different transaction types on Binance Smart Chain:
| Transaction type | CGT | Income | Tracked in Recap |
|---|---|---|---|
| Deposits | |||
| Withdrawals | |||
| Buying crypto with fiat | |||
| Crypto to crypto | |||
| Selling crypto for fiat | |||
| Earning staking rewards |
Refer to our tax guides for a more detailed look at crypto tax rules.
