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European Crypt Tax Company Announce Partnership to Fuel US Expansion
Two of Europe's biggest crypto tax filing companies intend to integrate into the U.S. market in an attempt to turbocharge their expected growth.
- Austria-based Blockpit and Germany's Crypto Tax revealed on Tuesday that they would begin providing a variety of enforcement and tax services, all under one roof.
- Crypto Tax lays out tax management systems for crypto and non-crypto properties such as standard shares that can be tailored to various countries; Blockpit provides tax monitoring and KYT (KYT) compliance tools.
- Klaus Himmer, co-founder and managing director of CryptoTax, and Florian Wimmer, founder and CEO of Blockpit, told CoinDesk that the merger would make them a full-scale regtech firm.
- The new firm will operate under the "Blockpit" tag, but will keep the branding "Crypto Tax" for the tax services.
- Structured by Austrian M&A expert Venionaire, Wimmer said that the transaction was similar to a 50:50 contract.
- The current offices of Blockpit in Linz will become the new headquarters for the recently formed group, with the offices of Crypto Tax in Munich to be maintained.
- Crypto Tax has already established a tax workaround, but it is yet to be enforced.
- The new firm, now dominant in the German-speaking community, will now turn its focus to the production of advanced regtech products in the far wider U.S. market.
- The latest Blockpit plans to collect € 1.6 million (~$1.9 million) from current investors in both companies and to get the ball rolling on the expanded Series C to fund the U.S. transfer.
- The prospective expansion to other English-speaking countries, as well as to Asian economies, would take effect in 2021.
- Wimmer said the deal potentially gave both firms a year or two to put up the goods the other business already had.
