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European Crypto Tax Companies Announce Merger to Power US Expansion

Legal

www.coindesk.com 09 September 2020 06:00, UTC
  
Reading time: ~2 m

Two of Europe’s largest crypto tax reporting firms are to merge in an effort to turbocharge a planned expansion into the U.S. market.

  • Austria-based Blockpit and Germany's Crypto Tax announced the merger Tuesday, saying they would start offering a range of compliance and tax services all under one roof.
  • Crypto Tax provides tax reporting frameworks, for crypto and non-crypto assets, like traditional securities, that can be adjusted to different countries; Blockpit offers anti-money laundering (AML) and know-your-customer (KYC) compliance tools.
  • Klaus Himmer, co-founder and managing director of CryptoTax, and Florian Wimmer, founder, and CEO of Blockpit, told CoinDesk the merger will make them a full-scale regtech company.
  • The new company will trade under the "Blockpit" brand, but will retain the "Crypto Tax" name for the taxation services.
  • Structured by Austrian M&A specialist Venionaire, Wimmer said the merger was close to a 50:50 deal.
  • Blockpit's existing offices in Linz will become the new headquarters for the newly merged company, with Crypto Tax's offices in Munich to be retained.
  • The new company, already prevalent in the German-speaking world, will now turn its attention to rolling out specialized regtech products in the much-larger U.S. market.
  • The new Blockpit plans to raise €1.6 million (~$1.9 million) from both companies' existing investors and get the ball rolling on an extended Series C to fund the U.S. move.
  • A prospective expansion to other English-speaking countries, as well as the Asian markets, is in the works for 2021.
  • Wimmer said the merger has likely saved both companies a year or so building out products the other company already had.

See also: Swiss Canton Zug to Accept Taxes in Bitcoin, Ether From Next Year


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