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Many people have been actively trading cryptocurrencies for years and the number of speculators and investors grows bigger every day, as media attention about this topic rises.
With over 50 different exchange platforms based all over the world and more than 1,500 different coins and tokens traded, it can be hard to keep an overview of split up funds. This can be fatal when tax authorities demand an explanation of your sudden income. Especially since every transaction is seen as a taxable event, even between different cryptocurrencies.
Most countries that demand taxes on cryptocurrency income use the FIFO (first-in-first-out) method to calculate the realized profits. However, depending on the country of residence there may be other forms of calculations applicable. With the rising popularity of cryptocurrencies many governments see the need for stronger regulation. At the same time fiscal authorities spend an increasing amount of resources to research the blockchain and track down transaction paths.
The average user might not be aware of the financial fraud he or she is eventually committing, or is simply not able to get a clear documentation of his or her trading history to prove the source of income. To deliver a solution to this problem, Blockpit provides a monitoring platform combining all sources of cryptocurrency income into one complete record. Including but not limited to trading profits, mining income, ICO participation, hardforks, airdrops, master nodes and more.
The process is a one-time setup, where read-only access to exchanges and blockchains is given by the user via API and public keys. Past and future transactions are imported in almost real-time to always keep the documentation up to date. Our licensed tax advisory partners are located in multiple countries and offer their seal of approval to liquidate risk of financial fraud with the click of a button.
Our vision is to offer a standardized, secure, precise and automated tax preparation process and offer an ecosystem for licenced tax advisors to connect to. This will ultimately result in a convenient and legal way to handle cryptocurrency taxes for our users.
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