Blockpit and CryptoTax merge to form the largest European provider of Cryptocurrency tax solutions
Since the beginning of this year, we have been in contact with our German competitor CryptoTax and today we proudly announce the official merger of the two companies:
"Although Blockpit and CryptoTax were active in the same market segment, they had different focuses and strengths. We took a close look at the companies' structures and recognized a very big synergy potential, especially in technological merging and country coverage" - Florian Wimmer, CEO of Blockpit GmbH.
With this takeover, we want to use each other’s advantages and ensure international competitiveness. While Blockpit has always had a very strong focus on usability and automatization, CryptoTax has deeply committed itself to regulatory issues in order to be able to offer audited tax reports for several countries based on a law-centered approach. By seamlessly merging Blockpit’s platform with CryptoTax’s engine to be used for multiple respective countries, we are able to take our software to a whole new level and offer the best solution for the calculation of crypto taxes not only in Europe, but also internationally.
What does this merger imply for Blockpit users?
For existing customers of both companies, nothing will change at first, as the previous functions as well as the price model will remain the same. The migration to a common platform should take place smoothly in the background over the next months. The users of CryptoTax can then look forward to an upgrade of the interface as well as enhanced functions. Here are a few quick facts:
In addition to Austria and Germany, "Big 4"-certified reports are now also offered for Switzerland and the USA. Also, a standardized report for all other countries will be available.
By integrating the CryptoTax tax engine, a strong performance improvement in the recalculation of tax ratios is expected. The scope of the report will also be expanded to include additional financial products, e.g. futures, (foreign exchange) forward transactions, specific equity and debt instruments.
Due to the merger of the two teams, more resources will be available in future for extended functionalities (new exchange/ wallet connections, tax optimization and country expansion).
Evolving from a crypto tax expert to a holistic RegTech
The expanded product range resulting from the merger is another major step towards becoming a holistic RegTech for digital assets. The software developed by CryptoTax for the German capital gains tax deduction procedure offers - for issuers of traditional as well as innovative "tokenized" securities - a comprehensive tax solution, while Blockpit, through the development of a KYT tool (Know-Your-Transaction), has set its sights on the legally compliant money laundering audit of digital assets in addition to tax returns.
This comprehensive product offering caters to the needs of the newly formed group of companies that are perfectly equipped for the upcoming EU-wide introduction of MiCAR (Markets in Crypto-Assets Regulation), which classifies crypto assets, digital assets and stablecoins as regular financial instruments this year.