ATO Targets Binance Crypto Traders in Australia – Here’s What You Need to Know

If you’ve been trading crypto on Binance, or used it at any point—even just to test the waters—this article is for you.

The Australian Taxation Office (ATO) has officially stepped up its game in 2025, and they’re cracking down hard on crypto users across the country. It is not only big gains that are under scrutiny but even small experiments may be placed under scrutiny.

So, let us decipher the situation and what is at stake and what you can do to ensure that you are safe right now.

Why Are Crypto Traders in the ATO Crosshairs?

It’s no secret that crypto trading in Australia has exploded in recent years. But the ATO believes a lot of people haven’t been reporting their crypto profits correctly—or at all.

So this year, they’re going straight to the source.

They’ve requested data from Binance and other major exchanges to identify Aussie users and check whether their tax returns match up with their actual crypto activity.

That means if you’ve ever:

• Swapped one coin for another,
• Staked crypto for rewards,
• Received airdrops or referral bonuses,
• Or cashed out into your bank account…

…the ATO probably knows.

What Kind of Data Is Binance Handing Over?

The ATO isn’t just looking for basic stuff. They’re going deep.

Here’s the kind of info Binance and other exchanges are being asked to provide:

• Your name, date of birth, email and phone number
• Your linked bank accounts
• Crypto wallet addresses
• A full list of transactions (trades, deposits, withdrawals)
• Which coins you bought, sold, or swapped—and when

If you thought trading between wallets or using privacy coins kept you anonymous… think again. The ATO is now working with AI tools and blockchain analysts to connect the dots.

So What Happens If You Didn’t Report Your Crypto Gains?

Let’s say you forgot to include your crypto profits in last year’s tax return, or maybe you didn’t even realise certain trades were taxable. What now?

Here’s what could happen:

• The ATO could hit you with hefty fines—sometimes up to 75% of the tax you owe
• You could be charged interest on back taxes
• If they believe it was intentional, you could face an audit (yes, even years later)
• In serious cases, there could be legal action

And the scary part? You may not even realize that you have done something wrong.

A lot of Aussies still think crypto is a “grey area.” But the ATO is treating it just like stocks or property. That means even if you’re just swapping Bitcoin for Ethereum, you might owe tax on the gain.

Why Binance Users Should Pay Extra Attention

Even though Binance Australia pulled out of offering AUD services in 2023, that doesn’t mean your activity there is off the hook.

In fact, Binance is one of the top platforms the ATO is focused on, because it had such a large Australian user base.

If you’ve used Binance in the past, even if just for a few trades or to test out staking, your data might already be in the ATO’s hands.

What Counts as a Taxable Crypto Event?

Let’s keep this simple. Here’s a list of things that trigger a tax event in Australia:

• Swapping crypto for another crypto
• Selling crypto for AUD
• Receiving crypto as payment
• Staking or earning interest on your coins
• Getting paid in crypto for a job
• Airdrops, bonuses, and mining rewards
• Buying something with crypto

Even if you never cashed out into fiat, you might still owe tax—because the ATO sees those gains as income or capital appreciation.

The Biggest Mistakes Crypto Traders Make

Here are the common ways Aussies are getting into trouble with the ATO:

1. Thinking crypto-to-crypto trades aren’t taxable
2. Only declaring trades when converting to AUD
3. Forgetting about DeFi or staking rewards
4. Losing track of wallet-to-wallet transfers
5. Not keeping records (yes, you’re required to store them for 5 years!)

If any of this sounds like you, don’t worry—you’re not alone. The good news is, there’s still time to fix it before the ATO comes knocking.

Related: How to Report Crypto Gains in Australia (2025 Guide)

What You Should Do Right Now (Even If You’re Behind)

It is fine that this article is making you sweat a little. It is essential to take the step, not tomorrow. The following is the way to do it:

1. Download Your Binance History

Log into your Binance account and export everything: trades, deposits, withdrawals, staking activity—you name it.

2. Use a Crypto Tax Calculator

Platforms like Koinly, CryptoTaxCalculator, and CoinTracker make it super easy. Just upload your Binance data and they’ll show you what you owe.

3. Amend Past Returns if Needed

If you missed declaring gains in previous years, you can fix it. The ATO tends to be more lenient with people who come forward before getting caught.

4. Include Everything in This Year’s Return

Make sure your 2025 tax return includes all your crypto activity—even if you lost money. Losses can actually reduce your tax bill!

5. Talk to a Crypto-Savvy Tax Agent

This isn’t the year to wing it. A tax professional who understands crypto can help you minimise your taxes and avoid getting audited.

Real Numbers: How Big Is This Crackdown?

• The ATO has already requested data from 1.2 million accounts
• Over $3 billion AUD in unreported crypto gains has been identified
• 400,000+ warning letters went out last year
• Up to $7,500 in penalties per offense
• Binance, CoinSpot, Kraken, and others are part of the data-matching program

The message is clear: crypto isn’t invisible anymore.

Quick FAQ – People Also Ask

Final Thoughts

This does not have anything to do with fear, but information, and activity.

There is a very rapid growth of crypto in Australia, and ATO is merely following suit. If you’ve used Binance or any other exchange, now’s the time to get your tax situation in order.

Take an hour, run your numbers, talk to someone if you need to, and make sure you’re above board. Because in 2025, the ATO isn’t just watching—they’re acting.

Don’t wait for the audit letter. Take control now, and protect your crypto future.