Glassnode Sells Crypto Tax Platform Accointing to Blockpit, Shifts Focus to Institutional and DeFi Solutions
Summary:
Digital asset intelligence firm Glassnode has sold its cryptocurrency tax platform Accointing to European compliance provider Blockpit, allowing Glassnode to focus on delivering Digital Asset Intelligence Solutions to institutional clients and the decentralized finance (DeFi) sector. Blockpit aims to use the acquisition to build a consolidated cryptocurrency tax platform for Europe, and allow former Accointing users a seamless transition. This comes at a time of impending regulations, such as the Crypto-Asset Reporting Framework and the Directive on Administrative Cooperation, aiming to increase the monitoring of cryptocurrency transactions.
Digital asset data firm, Glassnode, is stepping away from cryptocurrency tax projects in favor of dedicating its resources towards creating solutions for institutional investors and the decentralized finance (DeFi) sector. As part of this shift, Glassnode confirmed on November 6, the divestment of its tax software, Accointing, to Blockpit, a European firm specializing in cryptocurrency compliance. The deal, reportedly worth millions, was not publicly disclosed in detail by either party involved.
The sale will see Glassnode exit the cryptocurrency tax field, as explained by a company representative. They noted that this departure will allow the company to concentrate fully on developing cutting-edge Intelligence Solutions for its digital assets, catering to their institutional clientele. Advancements in DeFi data solutions and moving into other digital asset sectors are part their future plans, the spokesperson added.
The representative explained that after leading in on-chain data for Bitcoin and Ethereum, Glassnode is expanding its product range into DeFi with the intention of providing institutions with DeFi data and tools to facilitate their trading and understanding of the DeFi space.
This transaction follows just one year after Glassnode originally purchased Accointing in an effort to incorporate tax reporting compliance tools on its platform in October 2022. With the newest acquisition by Blockpit, the company is continuing a trend of expanding through mergers, having already merged with German competitor Cryptotax in 2020. Blockpit aims to develop a unified, comprehensive cryptocurrency tax platform for Europe, with this acquisition being a step towards that vision.
According to Blockpit CEO, Florian Wimmer, the purchase is an ideal opportunity due to the similar nature of Blockpit and Accointing's platforms. He noted that Accointing users could swiftly transition their profiles and data to a new Blockpit account with minimal effort. This streamlining will allow Blockpit to dedicate its combined resources to enhancing a unified platform, improving customer experience and delivering more features.
Wimmer also noted that Blockpit stands to double its revenue without increasing costs by shutting down the Accointing infrastructure, thereby greatly boosting their cash flow. The acquisition happens to coincide perfectly with the incoming regulations such as the Crypto-Asset Reporting Framework (CARF) and the Directive on Administrative Cooperation (DAC8). The CEO emphasized that the adopted regulations are poised to drastically increase the crackdown and legal action against tax fraudsters.
Adopted officially in October 2023, DAC8 will give tax authorities the power to oversee and evaluate every cryptocurrency transaction made between individuals or entities within EU member states.
Published At
11/7/2023 7:00:00 AM
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