How ACCOINTING.com is Taking on the Wild West of Crypto Taxes

The cryptocurrency industry is in a very good place at the moment. Following several bull runs in the last year for tokens like Bitcoin and Dogecoin, along with increased institutional support from companies like PayPal, more people are getting into the industry than ever.

Whether it is buying tokens with the hopes of reselling later or using crypto to make purchases, cryptocurrency is more popular than ever before. However, this increased visibility brings the issue of cryptocurrency-related tax and, more specifically, its treatment by both crypto holders and governmental bodies to the forefront.

The Complexities of Crypto Tax

While cryptocurrency acts as a medium of exchange, a lot of its use is as an investment tool. Many people buy crypto to sell them later for a higher price, as they would with traditional stocks — spelling profit for investors.

This treatment of cryptocurrency as an asset or investment tool also spills over to the public sector. In most countries, cryptocurrencies are treated as investments and thus, are subject to the same or similar tax treatment as stocks.

As the capital being put into the crypto industry increases, governments have an even more deliberate effort to enforce crypto tax codes and ensure the collection of taxes. Many crypto exchanges now require government-issued identification before setting up accounts, and some are even required to report crypto transitions to various tax authorities to ensure compliance.

This puts crypto holders in a precarious position as some might not be familiar with the process of filing taxes or might be confused about the technicalities of fluctuating crypto prices and the correct way to file taxes. Thankfully, the market has responded to this need by giving birth to several accounting platforms that take the burden off the consumer to file their crypto taxes and do it for them.

One that stands out is ACCOINTING.com, an international platform that allows users to keep track of their crypto portfolios and file their taxes.

All About ACCOINTING.com

One of the first and most important things for ACCOINTING.com is compliance with the countries’ tax authorities. Each region has a different tax code, and the average crypto holder might find it tedious to read and fully grasp the ones that apply to them.

ACCOINTING.com provides a product that is already compliant with the regulations of the jurisdictions that they serve. It also saves users the trouble of having to report their crypto transitions manually. When the average crypto holder thinks of reporting their crypto tax, they might imagine manually going through their wallets or exchange accounts and reporting on every minuscule transaction they have made in a certain time.

With ACCOINTING.com, you only need to connect your wallet or exchange account, and the information is automatically downloaded for them. After this download, ACCOINTING.com’s software determines the relevant transactions and prepares a tax report of how much you have to pay as tax, including capital gains and income tax.

This is not limited only to traditional crypto trading but also encompasses DeFi transactions, staking, margin trading and mining. In addition, any sort of cryptocurrency transaction carried out by the user can be calculated for tax purposes. The company operates in several countries, including the United States, the United Kingdom, Germany, Switzerland, Austria and Australia.

Cryptocurrency and Taxation

Tax as a concept is always complicated, but it is made even more so by including a new and innovative concept like cryptocurrency. Consumers, from all accounts, are not going to stop using cryptocurrency anytime soon, and governments are becoming even more determined to tax crypto-related transactions.

That is why tools like ACCOINTING.com are so needed as they help new and existing crypto holders comply with tax directives while helping the industry go mainstream. Moving forward, there could be greater tax compliance from the industry.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content was purely for informational purposes only and not intended to be investing advice.