Lykke, a Zurich-based, Blockchain-enabled trading platform, allies with CryptoTax to help customers with country-specific tax reports. Last year have been in favor of Blockchain based tokens as they witnessed a significant rise in attention and value. Lykke strives to increase the efficiency of Blockchain technology in financial services, making it simpler even for non tech-savvy customers by reducing complexity and providing one-of-a-kind customer experience concerning digital asset trading.
Lykke was founded by Richard Olsen, founder and former CEO of OANDA – a leading forex service provider. The digital exchange allows trading cryptographic tokens, fiat and virtual currencies through any mobile device running an Android or iOS operating system.
Using Blockchain based “colored coins” allows the exchange to transfer any kind of real-world asset to the Bitcoin Blockchain and enable trading without imposing transaction fees.
A brand of Munich based 21 Consulting GmbH, CryptoTax, is endeavors to constantly develop and offer tax reporting solutions and other regulatory declaration services for users of Blockchain assets and customers of cryptocurrency exchanges to enable them stay compliant with the law of their residence state.
Also read: Blockchain Technology Could Revolutionize Taxation
The German company CryptoTax envisions to simplify legal obligations for digital assets investors by easy, but top-notch services to businesses as well as private individuals. In wake of this, the firm has a strategic alliance with KPMG, one of the Big Four accounting firms, to connect with their global network of tax and legal professionals and to ensure compliance with the current state of legislation.
A recent survey of KPMG Switzerland reveals that banks across the globe are imposed with an increasing demand for tax reports from their overseas customers. Particularly customers from Western world are asking for country-specific tax reports as domestic banks provide these services free of cost. In light of this development, such services are crucial to enable a sustainable customer relationship with overseas customers.
Seeing the rise in value of Blockchain assets in the last month, a vast range of cryptocurrency users is expected to make a taxable income in the year 2017. Besides, the regulators and tax authorities are growing more aware of the instances. However since there are various unanswered questions related to taxation of digital assets, a lot of users have to struggle to calculate their taxable gains and losses. They need help to achieve their regulatory and tax declaration obligations.
Richard Olsen, Lykke founder and CEO, said:
“This is one more step along the way toward making Blockchain-based trading a viable alternative to traditional markets. It is essential for us to be able to offer a wide range of reporting and declaration services. Transparency is one of our foundational values: trust among our user base, and openness to regulatory authorities. CryptoTax’s strategic thinking demonstrates their shared commitment to these goals.”
CEO of 21 Consulting, Klaus Himmer, states:
“Because of our experience in the conventional financial services industry we know that tax reports are already market standard and will also help companies operating in the field of cryptocurrencies to reach a broader market acceptance while differentiating from other providers. We are very pleased Lykke chose us to support them to manage the increasing demand of country-specific tax reports. We are sure that the cooperation will help both parties to foster their strong market position and help them to drive the market acceptance of Blockchain based financial instruments.”
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