Blockpit Makes Tracking Crypto Portfolio & Calculating Crypto Taxes Easier! [Interview]
The founders saw the current gap around taxes and cryptocurrency. And then built a goldmine of a company. In fact, recently, Blockpit was awarded the best blockchain startup at the CESAwards.
It now continues to grow rapidly.
At its core, what Blockpit does it simple: It facilitates tax filing for crypto traders, tax consultants, banks and authorities. Through them, not only can you track your current crypto portfolio but also import your past trades, get your taxes calculated, and then report / file your taxes.
In fact, we got in touch with the CEO of Blockpit — Florian Winner — to learn more about Blockpit and why it offers clarity in your crypto life. We asked him 11 important questions and received fantastic to-the-point answers.
The entire interview below walks you through Blockpit, what it does, the benefit of TAX token (a security token), current partnerships, and the future growth. Everything is here for you:
1. Can you explain Blockpit in a simple language?
If you make profit investing in the stock market or in other speculative assets like for example gold, governments get curious how you made that money and are most likely demanding a portion of your gains as taxes.
Not complying to these requests can result in hefty fines or even jail time.
With cryptoassets there is a new market with very complex regulations, that can be very confusing to follow. Blockpit is a software platform, which helps people, who are interested in investing in cryptoassets, to have a clear documentation and stay tax compliant.
2. What is so exciting about Blockpit that everyone should know about?
While many people see cryptocurrencies as a disruptive technology that will eliminate the banking system and bring some kind of anarchy, we believe that cooperating with the existing system and changing it from within is the way to go.
There are many cryptocurrency portfolio and tracking applications out there (you may know Blockfolio or Cointracking), but none of those are focused on actual compliance and approved or audited solutions.
We work with large and established partners to guarantee correct results.
3. Where is the Blockpit (TAX) token used for? What are its advantages?
The TAX token is the first Security Token under Austrian law. It is fully regulated and gives its token holders a share of the company’s revenue. The revenue stream will be fully transparent and displayed in real-time to investors.
By tokenizing this participation right we bring liquidity to a traditional financial instrument.
4. What is the ONE biggest challenge Blockpit is facing and solving right now?
Regulation is different in every country and uncertain in many of them. Staying up-to-date and adapt our platform is a constant challenge.
5. What led to the foundation of Blockpit?
To be short – our own misery.
The founders have been active in the cryptocurrency market for multiple years and have been mining, staking, trading on numerous different exchanges and also investing in many ICOs. This left us with an extremely complex setup when it came to tax liabilities.
As there was no solution to ease the effort of recreating a complete documentation and optimized tax calculation, we decided to create something our own.
6. What barriers of entry have you identified during the process of launching Blockpit?
The cryptocurrency market is moving very fast and to stay in front you have to keep up. So finding skilled developers to complement our team has proven a challenge (we are still hiring).
Also there are many special cases like hardforks, airdrops, masternodes and so on, that have to be considered for correct tax reporting. Usability is definitely a barrier, where we will forever continue making improvements.
7. Can you please tell us about your background and your team?
I studied Media Technology and then spent 4 years working at KPMG. During that time I was actively investing and trading cryptocurrencies. I think this gave me the ideal mix to start a RegTech company dealing with these new assets.
My co-founders consist of a serial-entrepreneur full-stack developer, a licensed tax advisor, an expert in data analytics and cyber security and an equity-partner of KPMG.
All of them have been involved with cryptocurrencies for quite a while.
8. How do you perceive blockchain technology? Where do you think it is it heading in the next five years?
Blockchain technology is definitely not the “cure for cancer” many people sell it as and currently has very little real application cases. But of course we are at the very beginning (like the internet in the 90s) – ultimately Blockchain will disrupt certain economic sectors for sure. Having immutable records and decentralized governance will prove a big step in our evolution as society.
9. Great. Would love to know about partnerships?
Partnerships are the most important factor if you are trying to engage with the current system, as we are doing right now.
We wouldn’t be that far without our partners like KPMG, Raiffeisen Bank International, 500 Startups and the Austrian Ministry of Finance, who provide us with the necessary trust and network to succeed.
10. In the next six months, how are you going to attract people to Blockpit?
We are currently working with multiple banks on pilot projects in European countries. Almost everyone who owns cryptocurrency also owns a banking account.
Once those people try to cash out their profits, banks will stop them in their tracks because of Anti-Money-Laundering (AML) regulations and might freeze their accounts. We are targeting those people in cooperation with he banks by providing a proof of origin accepted by banks to prove their source of income and ultimately introducing them to the Blockpit platform.
11. What is your expansion strategy?
We are currently providing our services for Austria and Germany, but plan to support all European countries until the end of 2019. We might include the US, Korea and Japan early, depending on their regulatory development.
As an Austrian company our focus will definitely stay on Europe, as we have our large network and important partners here.