Another crypto merger targets tax reporting.
European experts in cryptocurrency tax reporting are joining forces to enter markets in the United States and Canada.
Blockpit, an Austria-based crypto compliance expert, has completed a merger with its German competitor CryptoTax, the firm announced on Sept. 8.
Both focused on providing crypto tax reporting tools, Blockpit and CryptoTax will now be working together to expand to global jurisdictions like the U.S., Canada, Australia and the United Kingdom in 2021.
Currently operating in Germany, Austria and Switzerland, Blockpit and CryptoTax are also planning to extend their European presence with the merger, Blockpit’s representatives said.
Klaus Himmer, co-founder and managing director at CryptoTax, said that the new merger essentially enables the two companies to become an international company. “The medium-term goal is to combine both companies to a renowned global player as well as an intensive expansion into the U.S. market,” Himmer said.
Blockpit’s executives noted that the merger will not affect existing customers of both companies in any way as both Blockpit and CryptoTax will keep their respective offices in Linz and Munich. Over the next few months, CryptoTax is expected to redesign and adapt its frontend to the Blockpit interface, the company’s representatives noted.
Blockpit and CryptoTax’s joint effort to expand their crypto tax reporting expertise comes shortly after the U.S.’ tax authority, the Internal Revenue Service, posted an update to crypto taxation rules. According to the IRS, crypto revenue earned from microtasks through crowdsourcing or similar platforms is taxable as ordinary income.
Blockpit and CryptoTax are apparently going to face much competition in the U.S. as there are a number of local crypto tax-focused companies like Missouri-based CryptoTrader.Tax and TokenTax.
