Cryptocurrency intelligence firm Glassnode said it will abandon projects related to cryptocurrency taxation and instead focus on new solutions for institutional investors and decentralized finance (DeFi).
Glassnode announced on November 6 the sale of its cryptocurrency-focused tax platform called Accointing to European cryptocurrency compliance provider Blockpit. The companies declined to disclose the size of the deal to Cointelegraph, saying only that it was a “multi-million dollar transaction.”
“Glassnode will exit the cryptocurrency tax space through the sale of Accointing to Blockpit,” a spokesperson said, adding that the deal allows the company to focus more on delivering new digital asset intelligence solutions to institutional clients.
“We have spent the past few months reinventing our infrastructure to enable us to enter DeFi data solutions and expand into other digital asset ecosystem areas in the future,” Glassnode representatives noted, adding:
“After building the leading on-chain data platform for Bitcoin and Ethereum, we are currently expanding our offerings into DeFi. Our goal is to equip institutions with DeFi data and tools to help them trade and navigate the DeFi space. “
The deal happened a year after Glassnode acquired Accoting will bring tax reporting compliance tools to its platform in October 2022.
The acquisition of Accointing marks another attempt by Blockpit to merge with a rival, having previously merged with German rival platform Cryptotax in 2020. With its latest acquisition, Blockpit reiterates its ambition and vision to build a unified cryptocurrency tax platform for Europe.
Blockpit co-founder and CEO Florian Wimmer told Cointelegraph: “Due to the very similar nature of the Blockpit and Accointing platforms, this acquisition is indeed a great opportunity.”
related: 5 countries challenge cryptocurrency experts and investigators to fight tax crimes
Wimmer said Accointing users can “easily migrate their profiles and data” to a new Blockpit account, which he promised only takes a few minutes. The CEO said the account migration will allow Blockpit to focus all joint resources to develop a unified platform, deliver more functionality and deliver a better customer experience, adding:
“At the same time, Blockpit is able to double revenue without increasing costs – as we will be shutting down the Accointing infrastructure in the short term – thus significantly increasing our cash flow.”
The timing of the deal is also perfect, Wimmer said, referring to the upcoming Crypto-Asset Reporting Framework (CARF) and cryptocurrency tax reporting rules known as the Administrative Cooperation Directive (DAC8).
Wimmer noted: “Starting in 2026, all crypto asset service providers, including custodians, exchanges, brokerage firms, etc., will be forced to report users’ know-your-customer data as well as transaction data to tax authorities.” This An executive said the upcoming regulations would “significantly increase enforcement and prosecution of tax fraudsters.”
Officially adopted in October 2023, DAC8 aims to give tax authorities jurisdiction to regulate and assess every cryptocurrency transaction made by a person or entity in any other member state of the EU.
Magazine: The Best and Worst Countries for Cryptocurrency Taxes—and Cryptocurrency Tax Tips
Svlook
