Fintech Friday: Blockpit

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14 September 2018

Blockpit aims to clarify and simplify tax reporting and portfolio monitoring for those dealing in cryptocurrencies, said CEO and co-founder Florian Wimmer to Boris Plantier.

Blockpit was created by passionate cryptocurrency trader Florian Wimmer after a chance conversation about tax reporting. “I have been trading cryptocurrencies since 2015 and was very experimental in that,” says Wimmer who is CEO and co-founder of Blockpit. “I also did mining, ICO investments, staking, OTC and much more. During that time, I was also working for KPMG and one day, two of my colleagues from Tax and Advisory got wind of my crypto obsession and asked me out for a beer. They were also involved in trading and, at some point during an extensive conversation, they asked me how I did my tax report on the cryptocurrency profits.”

Wimmer admits to being shocked to learn the extent of his tax liabilities – and at the difficulty of meeting them. “I thought I was only subject to tax liabilities when I cashed out back into Fiat, which I didn’t do at that time,” he says. “They then explained that I have to factor every single trade, even between coins, to be compliant with regulations. Having done hundreds of trades on many different exchanges and the whole mining, investment thing, and then also being part of a few hardforks and airdrops, I was standing in front of a difficult challenge. I tried looking for software to automate it, but wasn’t successful, so I decided to rely on good old Excel. After about 10 hours I was not close to halfway through my transactions and I was pretty sure I’d already gone wrong.”

Realising that many other people faced the same challenge, Wimmer decided to do something to help. “My exact thought was: ‘How on earth do others do this – it is impossible! There must be many people out there who have the same problem’. That was how the idea to make our own solution was born, followed by the decision to make a business out of it.”

Wimmer and his team developed the Blockpit app and resource. “Blockpit basically does the following for its users,” explains Wimmer. “After a one-time set-up we track the user’s trades and income in real time, offering a clear overview and automated tax calculation for their legislation with a finished report. We complement this with a lot of helpful features, like individualized tax optimization hints, portfolio development, proof of origin for banks (AML), analytics – and of course all that also on a mobile app.”

The platform is in beta right now and is completely free to use. “We have a strong focus on Europe, as we are based in Austria and regulation is a very big topic here,” says Wimmer. “Of course, we will include other markets as we go.” is the company’s approach to providing a free information resource about crypto taxation. “There are many people out there who have no idea what rules they have to follow in their country,” says Wimmer. “We provide the chance to look it up within a few seconds. Further the CryptoTaxMap is a project that will be in development forever. As regulations change we want to incentivize everyone who participates in the project – mostly tax advisory firms around the world, but also people who have relevant information. Ultimately the TaxMap can also connect tax advisors with crypto-knowhow to potential customers.”

With these initiatives up and running, Blockpit is now raising funds to optimize its position. “Our team grew very quickly within the last months and we are now fundraising for future development and to speed up our progress and maintain our frontrunning position,” says Wimmer. “Instead of raising for equity, we are launching a Security Token, which will reward holders with a share of our revenue. This way of fundraising allows us to reach a broader group of potential investors and makes it possible to offer a new level of real-time transparency.”

In terms of product development, Wimmer says the company’s focus for 2019 lies on the European market and an additional B2B2C version. Blockpit’s extensive roadmap for the next three years includes full service in the DACH (Germany, Austria and Switzerland) market; generating revenue from 1 January 2019; offering a full version platform and full version iOS/Android apps for direct consumers; and launching a beta white-label version for tax advisory firms.

Further ahead, Blockpit will seek to expand to the rest of Europe and the US market; go public by listing on the Security Token Exchange; introduce zero-knowledge-proof security; launch a full version platform for tax advisory firms; and create a beta asset economics tool. Expansion into the Asian market and the launch of a full version asset economics tool will follow.

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Keywords : Blockchain , Fintech

Geography : Austria