Blockpit acquires competitor to form largest crypto tax compliance firm in EU

Austrian-based Bitcoin tax software developer Blockpit, announced acquisition of its German competitor CryptoTax, a tax compliance website, today. Both companies were founded in 2017, to provide legally compliant tax reports and taxable profits from trading with cryptocurrencies and the firms saw this merger as a midterm plan to internationalize company standards and expand into the US market.

CEO of Blockpit GmbH, Florian Wimmer said in the release: 

Although Blockpit and CryptoTax were active in the same market segment, they had different focuses and strengths. We took a close look at the companies’ structures and recognized a very big synergy potential, especially in technological merging and country coverage. 

The teams of both firms, Blockpit and CryptoTax, will remain in their original office locations in Linz and Munich respectively, the release said. Moreover, the announcement addressed the customers of both firms and said that the acquisition would not change anything for existing customers of both companies for the time being. 

Additionally, founders assured their users and said that previous functions and price models would remain the same and the transition to a common platform would take place smoothly in the background. However, the CryptoTax frontend will be redesigned and adapted to the Blockpit interface, and new functions will be added in the coming months, they said in the release. 

According to the Blockpit website, the firm along with CryptoTax is currently the largest European provider of Cryptocurrency tax solutions. Given the new crypto-friendly tax regulations in Switzerland, this merger may help the firm increase its customer base within EU countries.