With the acquisition, Blockpit aims to leverage economies of scope and ensure its international competitiveness. For example, the KESt tool developed by Cryptotax, which also offers tax reporting for traditional securities, complements Blockpit's KYT (Know-Your-Transaction) tool, which, in addition to tax returns, also targets the legally compliant anti-money laundering checks of digital assets.
Florian Wimmer, founder and managing director of Blockpit, explains:
"Although Blockpit and Cryptotax operate in the same market segment, they have different focuses and strengths. We examined their corporate structures closely and recognized great synergy potential, especially in the combination of the technology used and the expanded country coverage."
“The medium-term goal is to combine both companies into a well-known global player and to expand intensively in the US market,”
adds Klaus Himmer , former owner and managing director of Cryptotax. Blockpit and Cryptotax currently operate in the DACH region and the USA. Starting in 2021, the offering will be expanded to include new markets such as the United Kingdom, Canada, Australia, South Korea, and other EU countries. However, users can already have the software generate a standardized global report on all transactions, which can be submitted to the relevant tax authorities.
To accommodate these expansion plans, the teams of both companies and the Munich location will remain. Existing customers of both companies will initially not experience any changes as a result of the acquisition, as the existing features and pricing model will remain unchanged.
Help for investors
The company provides a free crypto tax guide for investors to download and recommends that all taxpayers document all income from cryptocurrencies transparently and accurately. The 50-page free PDF addresses the tax treatment of trading in digital assets in Austria, Germany, and Switzerland.
"Many private investors, as well as companies and large traders, still assume that the taxation of profits from crypto trades is a gray area or are uncertain about the current legal situation. However, the regulations are clearly laid down by the tax authorities, and we recommend comprehensive documentation of all trades for later proof and legal certainty. These reports can and will be requested by the tax office,"
explains Florian Wimmer.
