Blockpit collects $ 10 million and wants to develop Cryptotax further
The Fintech Blockpit wants to support investors with tax returns with regard to their crypto assets and mediate between traders, tax advisors, institutions and the tax office.
The fintech, founded in 2017 Blockpit has developed a legally secure and tested tax return solution for the treatment of crypto assets, according to the founders. Cryptotax, the name of the software, should enable investors to create a tax return for crypto investments. In addition, it should also be possible to prove where and when which transactions took place and whether these can possibly be sold tax-free within the one-year period.
The solution is aimed on the one hand at end customers who, if they only had a maximum of 25 transactions per year, even free receive the tax-correct list for inclusion in the tax return. If there are more transactions, there are costs of 199 euros per year. The tool supports all common crypto trading venues via API, can read data from Coinbase, Bitpanda, Bitfinex or Kraken and import transactions via CSV. The tool should also support the user with tax treatment, for example with income from staking, defi, lending, mining and margin trading, explains founder Florian Wimmer.
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Blockpit promises data import in real time
The data is imported in real time from popular crypto exchanges and wallets, standardized and then consolidated in a country-specific report that shows taxable profits and other important data. According to Wimmer, this is particularly elegant at Defis. “Decentralized finance is an exciting new topic where blockchain can be used optimally. I can collect all the data with my public key alone. ”In the future, some of the premium functions will increasingly be reserved for paying customers as part of a freemium model. For example, founder Florian Wimmer is thinking of tax simulation or precalculation.
Cryptotax was most recently localized for Spain and France, but can already be used in Germany, Austria and Switzerland as well as in the USA. By 2024, the company wants to offer suitable solutions for tax returns for the entire EU area.
10 million for the expansion of Blockpit
Now the Austrian fintech has announced Series A funding of $ 10 million. The current round is led by Middlegame Ventures; Also involved are Fabric Ventures, Force via Mass Capital, Tioga Capital, Avaloq Ventures and the investor Venionaire Ventures. Among other things, these venture corporations are or were also invested in Coinbase and the blockchain protocols Ripple and Polkadot. The capital increase is intended to accelerate the further development of Cryptotax, which is regularly audited by a Big Four auditing company in every country. “The audited tax framework and thus the necessary legal security for the customers is the biggest hurdle and the most important asset for us,” explains Wimmer. “In addition to the monetary boost, the expertise and the international network of investors in various areas will lead to new market access.”
The company hopes that demand could increase in light of the impending introduction of the EU DAC-8 directive and the sharp rise in crypto assets in recent months. The DAC-8 should facilitate the data exchange between trading platforms and tax authorities in the EU in the future – inquiries from investors on the part of the tax authorities could then become more frequent. A good time to expand – also with regard to the B2B business. Because in addition to the end customer business, Blockpit also wants to support the corporate business of corporate customers in the future. “This year we are seeing that more and more corporates are jumping on the crypto bandwagon, so that B2B is becoming more and more important for us. Here, too, we want to enable specialists to record this new asset class. “
