Where does Binance Report account owners?

pooya87

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Quote from: dkbit98 on January 16, 2022, 09:08:37 AM

How do you expect Chainanalysis and other similar blockchain analysis companies are getting all their information from, it's surely not from thing air or from regular customers.

By analyzing the blockchain. They don't have to receive the data from the exchange, knowing some of their addresses will help linking transactions. Besides most of their service for exchanges includes taint analysis which doesn't need that, they just report anything that looks like a mixed coin and it is not like their reports have been accurate! They are mostly nonsense anyway.

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I remember Binance giving customer information to government of Netherland without any court order, and they even froze accounts for some of their customers who are not Dutch citizens and they don't have any connection with that country.

Good point. Maybe "court order" was a strong statement, an "official request" might have been better. It is not like Binance has pledged customer privacy protection. If a government of a country from which they are getting a minimum revenue requests data, Binance will comply without resistance.

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For me Binance is shady exchange, but most people consider it one of the best exchanges in the world, even if they already had big leak of all customer data information.
I don't believe a single big company (or government parasites) to keep our information safe and secure.
This is just my own opinion and I could be wrong of course.

I completely agree.

Quickseller

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Quote from: dkbit98 on January 16, 2022, 09:08:37 AM

Quote from: pooya87 on January 16, 2022, 12:55:54 AM

The exchanges are obviously working with blockchain analysis companies such as Chainanalysis but the data flow direction is from the analyzer to exchanges not the other way around. Basically exchanges are using these blockchain analysis companies to do things such as blocking their users who deposit the so called "tainted" coins in their platform. @dkbit98 should clarify if it is otherwise.

It's two way street really.
How do you expect Chainanalysis and other similar blockchain analysis companies are getting all their information from, it's surely not from thing air or from regular customers.
They have software and algorithms that are reporting back addresses from all exchanges, including information they are getting from government agencies, and since that software is closed source, we can't know exactly what they are doing.

Most of chainanalysis customers do not care about transactions that came from coinbase, and chainanalysis' ability to identify transactions to/from/within coinbase does not provide much value to their customers.

My (educated) guess is that chainanslysis will make periodic deposits to various exchanges, casinos, darknetmarkets, mixers and other services so they can trace where their money went, and what other inputs can be connected to their deposit (and withdrawal) transactions. They likely do something similar to this, but on a larger scale.

dkbit98

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Quote from: pooya87 on January 16, 2022, 12:55:54 AM

The exchanges are obviously working with blockchain analysis companies such as Chainanalysis but the data flow direction is from the analyzer to exchanges not the other way around. Basically exchanges are using these blockchain analysis companies to do things such as blocking their users who deposit the so called "tainted" coins in their platform. @dkbit98 should clarify if it is otherwise.

It's two way street really.
How do you expect Chainanalysis and other similar blockchain analysis companies are getting all their information from, it's surely not from thing air or from regular customers.
They have software and algorithms that are reporting back addresses from all exchanges, including information they are getting from government agencies, and since that software is closed source, we can't know exactly what they are doing.

Quote from: pooya87 on January 16, 2022, 12:55:54 AM

The exchanges also won't hand out information to any of these companies without a court order. Some shady exchanges desperate for money could be illegally selling users data though but that is a different topic.

Not exactly true.
I remember Binance giving customer information to government of Netherland without any court order, and they even froze accounts for some of their customers who are not Dutch citizens and they don't have any connection with that country.
For me Binance is shady exchange, but most people consider it one of the best exchanges in the world, even if they already had big leak of all customer data information.
I don't believe a single big company (or government parasites) to keep our information safe and secure.
This is just my own opinion and I could be wrong of course.

Quickseller

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Quote from: pooya87 on January 16, 2022, 12:55:54 AM

Quote from: Quickseller on January 03, 2022, 04:35:31 PM

Quote from: dkbit98 on December 31, 2021, 07:25:24 AM

They are 100% working with Chainalysis

Do you have a source for this? What level of information is binance providing Chainalysis?

The exchanges are obviously working with blockchain analysis companies such as Chainanalysis but the data flow direction is from the analyzer to exchanges not the other way around. Basically exchanges are using these blockchain analysis companies to do things such as blocking their users who deposit the so called "tainted" coins in their platform. @dkbit98 should clarify if it is otherwise.

The exchanges also won't hand out information to any of these companies without a court order. Some shady exchanges desperate for money could be illegally selling users data though but that is a different topic.

I agree that most exchanges are receiving information from blockchain analysis companies (if not using their own propriety software). This is needed to stop people from laundering money via their exchange. I am not sure how much Chainalysis charges or what their pricing structure looks like. It is possible that for an exchange such as Binance, it would be more economical to do their blockchain analysis in house.

I read dkbit98's post to say that Binance is providing information to Chainalysis. It is possible I misread his post though.

pooya87

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Quote from: Quickseller on January 03, 2022, 04:35:31 PM

Quote from: dkbit98 on December 31, 2021, 07:25:24 AM

They are 100% working with Chainalysis

Do you have a source for this? What level of information is binance providing Chainalysis?

The exchanges are obviously working with blockchain analysis companies such as Chainanalysis but the data flow direction is from the analyzer to exchanges not the other way around. Basically exchanges are using these blockchain analysis companies to do things such as blocking their users who deposit the so called "tainted" coins in their platform. @dkbit98 should clarify if it is otherwise.

The exchanges also won't hand out information to any of these companies without a court order. Some shady exchanges desperate for money could be illegally selling users data though but that is a different topic.

Quickseller

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My assumption is that binance verified the KYC information of all the beneficial owners (above a certain threshold) of the corporation that opened an account.

I am not sure if they will proactively report to the tax authority that has jurisdiction over your friend, however they would certainly comply with any requests for information.

Also, as a FYI, it is probably not a good idea to go around asking for advice on how to evade taxes on internet forums.

Quote from: dkbit98 on December 31, 2021, 07:25:24 AM

They are 100% working with Chainalysis

Do you have a source for this? What level of information is binance providing Chainalysis?

Slow death

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Quote from: pornluver on December 31, 2021, 03:22:20 AM

My friend open a corporation in seyschelles. He is the main beneficiary of the corporation.

i assume your friend doesn't live in seyschelles, right? he should have consulted an attorney about tax payments before opening this corporation.

Quote from: pornluver on December 31, 2021, 03:22:20 AM

I wonder do Binance reports account holders to seyschelles authority or other authorities?

binance doesn't even have a location, they don't report their clients' taxes, it's up to each person to do that in their country. one thing i cant understand what has to do with binance with seyschelles corporate account your friend opened?

why didn't your friend come to ask these questions?

Woodie

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This whole regulation and cryptocurrencies entanglement does not fit in well if am going to be frank about this topic!

All I see happening is pleasing the controlling authorities but in the actual sense these guys do not know what they are really doing...bitcoin is an asset without borders how do they account for activities done by citizens of various countries on international space...its really complicated if we follow it to the latter.

Findingnemo

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AFAIK, Binance will report to the tax authorities in case if they requested it and every individual have to report their earnings from cryptocurrency trading even if its not regulated in their country when they cashed out cryptocurrency into fiat form because bank accounts will report them so if the limit is too much reached then you will be under the radar of tax authorities. So even if there is no taxation better report the crypto gains into capital gains and file your tax report.

dkbit98

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Quote from: pornluver on December 31, 2021, 03:22:20 AM

Anyone get charged because binance report users?

How likely binance report their users to foreign tax authorities?

They are 100% working with Chainalysis and they are working with all government agencies, so don't expect anything to remain hidden in Binance exchange.
I saw numerous reports from their customers who got their accounts blocked because they got reported by government agency from Netherlands, even if customer is not Dutch citizen at all and he is not living there.
It's best to talk with some lawyer and don't keep any money on centralized exchanges, hacks can happen at any time.

Fortify

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Quote from: pornluver on December 31, 2021, 03:22:20 AM

My friend open a corporation in seyschelles. He is the main beneficiary of the corporation.

I wonder do Binance reports account holders to seyschelles authority or other authorities?

The corporation is in seyschelles.

Anyone get charged because binance report users?

How likely binance report their users to foreign tax authorities?

If this is out of topic, what forum this should go to.

If your friend truly wants to sleep easy at night then they are better off just declaring their assets and paying the relevant taxes on them, even if it does eat up a sizable chunk. Binance is likely to follow the path of Coinbase in aiming to eventually get listed on a big stock exchange, after they've finished squeezing their customers to the extreme in fees. Once that happens they will be under the spotlight and likely receive all sorts of regulatory requirements such as declaring who owns what. Most big economic countries will also be able to force Binance to declare any account holders from their country or otherwise ban them from operating in that jurisdiction, so they will likely hand over that information and may even do so retroactively. Places like the Seychelles offer some protection to the owners, but these supposed tax havens have folded like paper when large pressure is applied.

bittraffic

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Hard to see how far the jurisdiction can go now because I think binance had already registered all the domains of country extension. Honduras for instance although there is no binance.hn, the domain redirects to binance.com/en I think they are up to really dominate the crypto trade in every country.

Binance complies with country regulations as they always do.

hd49728

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Not your keys, not your coins!

Binance and other centralized exchanges have to obey law regulations and cooperate with law enforcement authorities. You can see it in Binance's Terms

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VIII. Compliance with Local Laws
It is Users’ responsibility to abide by local laws in relation to the legal usage of Binance Services in their local jurisdiction as well as other laws and regulations applicable to Users. Users must also factor, to the extent of their local laws all aspects of taxation, the withholding, collection, reporting and remittance to their appropriate tax authorities.ALL USERS OF BINANCE SERVICES ACKNOWLEDGE AND DECLARE THAT THEIR FUNDS COME FROM LEGITIMATE SOURCES AND DO NOT ORIGINATE FROM ILLEGAL ACTIVITIES; USERS AGREE THAT BINANCE WILL REQUIRE THEM TO PROVIDE OR OTHERWISE COLLECT THE NECESSARY INFORMATION AND MATERIALS AS PER RELEVANT LAWS OR GOVERNMENT ORDERS TO VERIFY THE LEGALITY OF THE SOURCES AND USE OF THEIR FUNDS. Binance maintains a stance of cooperation with law enforcement authorities globally and will not hesitate to seize, freeze, terminate Users’ accounts and funds which are flagged out or investigated by legal mandate.

Why KYC is extremely dangerous – and useless. If you don't want to have troubles with KYC and CEX, use DEX. Because when you submit documents for KYC and pass through it, CEX have your document and under request form law enforcement authorities, they will provide your documents, data to government. Obviously they won't arbitrarily to spread your documents and data around.

noorman0

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Binance will not report your/friend's tax bill, you have to do it yourself.

Quote from: pornluver on December 31, 2021, 03:22:20 AM

I wonder do Binance reports account holders to seyschelles authority or other authorities?

In general if your corporation is under the jurisdiction of the Seyschelles, then only the local tax authority has the right to request your tax return as corporate tax regardless of your residency status in another country assuming the benefits you receive from the corporation are net income after tax.

Quote from: pornluver on December 31, 2021, 03:22:20 AM

If this is out of topic, what forum this should go to.

You've asked this in the past, and I'd advise you again to contact your local tax advisor. Each country's tax policy may be different, so don't seek consultation on any random forum.

pooya87

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I don't think any exchange would voluntarily go to tax authorities and report anything to them, specifically a foreign agency. But if they were asked, they will comply right away. They are already asked by the authorities in their own jurisdiction and some others so they are sending them reports and if there is a cooperation between Binance and your government then they are sending them reports otherwise they have to be asked.

pornluver

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My friend open a corporation in seyschelles. He is the main beneficiary of the corporation.

I wonder do Binance reports account holders to seyschelles authority or other authorities?

The corporation is in seyschelles.

Anyone get charged because binance report users?

How likely binance report their users to foreign tax authorities?

If this is out of topic, what forum this should go to.

Topic: Where does Binance Report account owners? (Read 168 times)