As the world slowly starts to accept the crypto industry as something that will stay in the long run, many things and questions begin to pop up. The most important of these questions is: How can the government get its cut from it? A grim, but needed question to ask, and it typically gets answered with one word: Taxation.
Crypto Tax Scramble
The filing deadline in the US, in particular with the year of 2019, everyone’s starting to scramble about to get their books in check. This is a significant stressor for anyone, and the crypto industry compounds this issue. Simply put, not even the IRS has crypto fully figured out, and the bureaucracy surrounding it can get needlessly complicated.
To respond to this, crypto-focused tax firms have started to pop up. Two firms, in particular, Token tax and Blockfolio, are trying to streamline the process for the US residents. TokenTax, in particular, is a platform that allows investors to analyze the data from their various crypto transactions. This will enable them to create the appropriate tax forms to handle this matter. Blockfolio, in turn, is a mobile platform for cryptocurrency portfolios.
With the two companies achieving integration with each other, users will be capable of tracking crypto on Blockfolio. They simply have to sign up to TokenTax, then be given the option to import these records into the Blockfolio platform.
Alex Miles, the co-founder of TokenTax, gave a public statement about the matter. He explained that his company’s users suffer one of the largest time sinks when it comes to getting their various transactions into the TokenTax system. The company took notice that most of its users were already leveraging Blockfolio to track their transactions, so integration was the natural chain of events.
Edward Moncada, the CEO of Blockfolio, gave a public statement about the matter as well. He expressed his and his group’s joy of the new partnership and its subsequent integration. With it, the TokenTax experience most of its users already leverage can now be even more streamlined and easier to use.
The Necessary Evils
Good news comes for users already unofficially using both platforms, as well. They won’t have to redo their entire efforts’ work with the integration.
While many would cry foul at the fact that the government wants to add taxation on crypto, one must bear in mind that a country needs money. One of the easiest ways to gain this money is to impose taxes. These taxes pay for all the infrastructure a government provides. It’s not fun, but it is needed.