Good day everyone,

I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. In this post I will looking at the recent acquisition by Blockpit of Accointing as they look to dominate and improve the crypto tax services available in the European Union.

Blockpit

The Austrian based crypto tax service, Blockpit, has acquired its rival platform Accointing from the crypto data company Glassnode. The acquisition, the second for Blockpit, will allow them to align with the upcoming EU tax regulations which are known as the Eighth Directive on Administrative Cooperation (DAC8). The multi-million-dollar was completed as an entirely cash deal, with no share swaps involved. The CEO of Blockpit, Florian Wimmer, noted that the deal was “all financed via debt through our shareholders.” 

Glassnode, an on-chain market intelligence service provider, had previously acquired Accointing back in October 2022 for an undisclosed fee. Now with Blockpit having taken ownership of the business, it should provide a key step in their ability to enhance tax reporting services within the European Union. Wimmer noted: 

“This deal marks a significant milestone in our mission to deliver top-tier tax solutions to crypto users across Europe.”

With the new DAC8 regulations fast approaching, Wimmer's statement noted how the company is prepared to adapt with the upcoming regulatory changes. These new crypto tax laws within the European Union will compel companies to report customer holdings information, which will automatically be shared between tax authorities. Wimmer went on to note:

“Accointing’s integration into Blockpit is a leap forward in our preparation for DAC8, ensuring our users a seamless transition to the new tax reporting standards.”

With the DAC8 rules having been voted in by the European Parliment on the 13th of September 2023, these new guidelines will be focussed around crypto-asset service providers (CASPs). The DAC8 was adopted by the EU on the 17th of October 2023 and is expected to be enforced from 2026 onwards. EU member states will have until the 31st of December, 2025, to implement these rules into their business practices before the DAC8 regulations officially come into effect from the 1st of January, 2026.

Blockpit Team - Vladimir-Tosovic - CMO, Magnus Berchtold - CTO, Florian_Wimmer - CEO, Gerd Karlhuber - COO, Thomas Buchsteiner - CTO

DAC8 will cover a wide range of digital assets, including stablecoins, non-fungible tokens (NFTs), decentralized finance (DeFi) tokens, as well as proceeds from crypto staking. These new rules will work in tandem with the EU's Markets in Crypto Assets Regulation (MiCA) and the Organisation for Economic Cooperation and Development's (OECD's) Crypto-Asset Reporting Framework (CARF).

The chief legal officer at Blockpit, Max Bernt, noted in a statement:

"DAC8 in the EU and CARF on a global scale bring about a paradigm shift in crypto tax reporting: from now on, tax reporting obligations no longer lie solely with individuals, but also with service providers. This considerably increases tax transparency, as data on crypto traders and their transactions will be shared with tax authorities. It is, therefore, not surprising that the topic of crypto taxes is becoming more and more important in the public eye and now ranks alongside AML/CFT and Sanctions in terms of its significance."

With Blockpit having been founded back in 2017, it has also acquired rival company Cryptotax back in 2020 for an undisclosed fee. However, in terms of the overall deal, Accointing is considered to be "a magnitude bigger" according to Wimmer. With this acquisition completed, Blockpit is now a significant player in the European crypto tax landscape and should be seen on the same levels as TaxBit and CoinTracker in the U.S.

Have a great day,

Peace. CryptoGod-1.

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