Prominent American cryptocurrency exchange Gemini announced joining forces with the tax compliance firm Taxbit on the 29th of October. According to the official announcement, the latest partnership is aimed at automating as well as optimizing users’ crypto tax reporting.
It's never too early to start thinking about your crypto taxes. Excited to announce our partnership with @TaxBit to integrate their Tax Center Suite technology to help you automate and optimize your #crypto tax reporting!
Learn more on our blog: https://t.co/QibPEU7hyA
— Gemini (@Gemini) October 29, 2020
In a blog post, Gemini revealed that the United States-based customers will be able to download a completed tax report, once the ‘Tax Center Suite’ is fully implemented on the platform. This report can be uploaded for use in a variety of popular tax filing software or handed over to an accountant in the same format that the IRS requires.
Considering the lack of clarity with respect to cryptocurrency taxation in the country, the latest development seeks to help users in tracking real-time tax impact on their crypto trades on Gemini while the aforementioned suite help users monitor and lower tax liability by using the exchange throughout the year. The release further read,
“Tax Center Suite will also give you tools to monitor and lower your tax liability (or potentially increase your tax refund) as you use Gemini throughout the year. You will be able to see the real-time tax impact of your transactions, as well as receive trade alerts when tax saving opportunities are available.”
Following the announcement, Tyler Winklevoss, CEO of the cryptocurrency exchange commented,
“TaxBit’s software automates the calculations required for crypto tax reporting, helping reduce the pain point of crypto tax for our users. Investors will also be able to see real-time tax implications of any trades they make on Gemini”
Taxbit in Brief
The cryptocurrency tax software platform has been working towards enabling the mass adoption of crypto by automating the regulatory hurdle of tax compliance. Earlier this year, Taxbit partnered with digital money platform, Uphold to introduce a suite of tax services for users to proactively monitor their real-time tax liability or loss as they trade between currencies, along with features that provide better visibility into the tax impact of capital asset transactions.
As for the Winklevoss Twin’s-led exchange, Gemini has recently launched trading denominated in the euro roughly a month after it added pounds sterling for the U.K. market. These two developments were part of its mission to expand its global footprint. Additionally, it was recently granted an electric money institution license.
Crypto is going Global. @Gemini now supports Euro ($EUR) ???????? deposits and trading as well as Great British Pound ($GBP) ???????? deposits and trading across all of our platforms, including our mobile app and website. Onward and upward! ???? https://t.co/3Ta4ILsKFJ
— Tyler Winklevoss (@tyler) October 28, 2020
Besides, similar to many big centralized crypto exchanges, Gemini has also added support for a number of DeFi tokens recently along with some of the popular ones like Uniswap (UNI) and Yearn. Finance (YFI).