Space Summary
The Twitter Space Navigating Crypto Taxes with Blockpit: hosted by BingXOfficial. Discover the intricacies of crypto tax compliance and trading insights with Blockpit in this space. Learn about leveraging tools for tax reporting, the impact of strategic partnerships in the trading world, and the advantages of engaging with official partners like @ChelseaFC for exclusive opportunities. Education on tax implications is emphasized for sustained success in trading.
For more spaces, visit the Trading page.
Questions
Q: Why is understanding crypto tax obligations important for traders?
A: Compliance with tax regulations is essential to avoid legal issues and financial penalties.
Q: How can tools like Blockpit benefit traders in their crypto activities?
A: Blockpit aids in simplifying tax reporting and offers insights for informed trading decisions.
Q: What advantages do crypto exchanges gain from partnerships with sports teams?
A: Partnerships enhance brand visibility, credibility, and can attract a wider audience to the platform.
Q: What value does following official partners like @ChelseaFC bring to traders?
A: It can offer exclusive trading opportunities, community engagement, and potential benefits from the partnership.
Q: Why is education on crypto taxes crucial for traders in the long term?
A: Understanding tax implications can lead to better financial planning, compliance, and overall success in trading.
Highlights
Time: 00:15:40
Importance of Crypto Tax Compliance Discussing the significance of adhering to tax obligations in the crypto space.
Time: 00:25:17
Benefits of Blockpit for Traders Exploring how Blockpit can streamline tax reporting and improve trading strategies.
Time: 00:35:29
Partnership Impact on Platforms Analyzing the effects of partnerships with sports teams on crypto exchanges.
Time: 00:45:10
Traders' Engagement with Official Partners Understanding the advantages of following official partners like @ChelseaFC for traders.
Time: 00:55:42
Educational Importance for Traders Highlighting the value of education on crypto taxes for traders' long-term success.
Key Takeaways
- Understanding crypto tax obligations is crucial for traders to comply with regulations.
- Leveraging tools like Blockpit can streamline tax reporting and improve trading decisions.
- Partnerships between exchanges and sports teams can enhance the credibility and reach of crypto platforms.
- Following official partners like @ChelseaFC can provide trading opportunities and community engagement.
- Education on crypto taxes and compliance is key to long-term success in the trading world.
Behind the Mic
Introduction and Initial Remarks
Right, Mike test. One, two, three. Mike test. All right, here we go. We're just waiting for our guest speakers to enter the AMA. Let's give them a few seconds. We should be able to get the show in the room. All right, so it seems like our guest speakers are both in the AMA. We're just trying to pass the mics to them. Wonderful. Let's just give them a few seconds to connect. All right, great. So it seems like everyone has their mics. Let's get the show on the road. All right, welcome, everyone. Thank you very much for making time today. Today's AMA is about navigating crypto taxes with blockpick, and we do have an expert here to help us do so. Before I do get into guest speakers and any potential incentives rewards, just a quick introduction of Binx. So.
Introducing Binx
Founded in 2018, Binx is a leading cryptocurrency exchange serving over 10 million users worldwide. Binx offers diversified products and services, including spot derivatives, pre-market trading for both spot and futures, options, and asset management-related products, all designed for the users evolving needs. This is regardless if you're a beginner or professional trader, Bingx is committed to being the trustworthy and reliable platform that empowers you with innovative tools and features to elevate your trading and crypto investments. In 2024. This year, Bingex proudly became the official crypto exchange partner of Chelsea Football club, making an exciting debut in the world of sports. Now, we do have a very special 50% discount URL. I will be passing it, sharing it, in case those who haven't seen the press release yet. I'll definitely be so to do so during this AMA. Today we have two special guest speakers. We have our chief product officer at Bing Hex, Vivian Lin. I'm just glad to be able to grab her on the show.
Guest Speakers Introduction
And we have the CEO of Blockpik, Florian Wimmer. He's also the co-founder of Blockpit. Perhaps we'll start with Florian. Florian, welcome to the show. Could you kindly introduce yourself? Absolutely. Hey, Will, thanks for having me. Hey, everybody. Thanks for joining in. My name is Florian. As Will already said, I'm one of the founders and CEO of Blockbit. I have a tech background, so I come actually from the software engineering side, worked at KPMG after that. So it's an audit and tax firm. And then stumbled across bitcoin in 2015, where basically my journey started actually with mining bitcoin. And then obviously 2017, the first ICO hype. Everything came together and it was just like trying out everything, registering exchanges, having the hardware wallets, thousands of transactions, hundreds of coins. And then obviously, a little bit of trouble with declaring my taxes.
Florian's Journey into Crypto Tax
And I'm from Austria, so central European country, quite high on regulation and compliance. And so they actually issued a statement on how to tax crypto. And it was for me, like, okay, how can I calculate this? I have no idea. How do I basically process all the data, all the transactions I did. And that was the starting point for the idea of blockbid, a crypto tax software, which we then launched in 2017 out of Europe, but for multiple countries. Thank you very much. Wonderful. I absolutely know how you feel. I remember following my crypto taxes for the first time quite a few years ago, and it was quite a mess on my end. And we also have Vivian. Vivian, could you kindly turn your mic and give us a quick introduction? I was just assuming some of the people in the audience may not know who you are.
Vivian's Introduction
Okay. Okay, no problem. Hello. Hello, everyone. I'm Vivian Ling. I'm now the chief product officer at Vingx. Vin X is a leading cryptocurrency exchange. So I have nearly a decade of experience in trading, product management, and market development. I've had the privilege to shaping the strategic direction for binge as my role as the CPO. So in the past, my career includes some key roles at Morgan Stanley, BNP Paribas, and Deutsche Bank. I basically trade commodity and then moved into forex and equity derivatives base before I joined the crypto side in 2020. So at Bingxnow, I focus on driving product innovations and enhancing user experience to meet the evolving needs from the diverse user base, from our community, and from the project team and all the partnerships we are working with. I'm committed to leveraging my expertise to propel binge to the forefront of the cryptocurrency exchange industry and hoping that BX can continue our commitment, continue our successful track record in providing good product and valuable asset.
Discussion on Questions and Tax Reporting
Yes, thank you very much. I'm just so glad that you were able to make time today for the show. All right, so I do have a few questions, and after that, we'll open up the floor so that the audience can ask their own questions. That being said, my first question is for Florian, and I'd love to know a little bit more about, like, you know, your journey in regards to how you started block pit. Like, how do you co-found the company and what really inspired you to really focus on crypto tax regulation? I mean, like, there are the option to do regular taxes. Why the crypto upfront? Well, everything is more interesting in crypto. Right. I think, like, regular taxes might be a little bit boring. Crypto taxes definitely aren't. I mean, it's still taxes, but it's like being on the forefront of innovation and tending to kind of like a necessary topic.
Inspiration Behind Blockpit
So I'm a person who loves to sleep well at night and obviously being confronted with the topic very early on, it was a thing that kept me awake, and I needed a solution to be able to sleep again well at night. So that kind of inspired me. Obviously my own problem, but from a company perspective, definitely looking into the future and seeing that this will be a topic that affects almost everybody. Authorities, they were kind of quiet on this in the beginning, but then with the hype in 2017 and 2021, when it is about billions and billions in capital, they started to dig into this. They started to do crypto specific regulation in multiple countries, especially in the highly regulated ones. This was like a number one priority. And now they are also getting their hands on the data. They know how to read blockchains. They know it's a public open ledger.
Compliance and Future of Crypto Taxation
They know how to really look and identify who is behind a wallet, and they're only going to get better at this. And so the inspiration was to really enable people to not only be compliant and don't be scared of the taxman coming eventually and you're not being prepared, but also obviously, to go to the boundaries of what's possible in optimizing your taxes in a legal perspective. Right. And actually, like, saving money or even getting money back if it was like a bad year where the market didn't went so well. Absolutely. I think you made some really good points there. It really brings up my first experience doing taxes myself and not knowing, like, how to calculate it. It was just so frustrating.
Benefits of Blockpit's Partnership
It's really nice to see that there are companies out there being able to support a lot of crypto users and especially the beginners out there who are completely oblivious when it comes to taxes because, you know, some people are in this space and they're, you know, they're young, and so they might not know exactly how to do their own taxes. Cause their family's been doing for them the whole time. Oh, wonderful. I'd like to know a little bit more about this whole, like, partnership. Now that we have block, pit and binge working with each other, perhaps, Oviv, you can shed a little bit light in terms of, like, how blockbit's tax reporting tools is working with Bingx. Like, how do you see this partnership benefiting our users? Particular regions that are really strict with tax regulations.
Integration of Tax Reporting Tools
Yeah, yeah, of course. I think the integration of Blockp's tax reporting tools into BNX is a quite significant step forward for our platform, especially for our users in regions with strict tax regulations, like Europe. So by partnering with Blockpit, we are actually providing our user with access to one of the most trust like, trusted and comprehensive crypto tax solution available. So this means our user can generate accurate and country specific tax report with like, without any hassle, with ease. So ensuring that they can stay compliant with local laws without the usual stress and the complexity. So for European traders specifically, where tax regulations are particularly stringent and vary from country to country, this partnership offer piece of mind.
Enhancing User Experience and Compliance
They can focus on treating and growing their portfolios, knowing that their tax obligations are being managed effectively, efficiently, and accurately. So ultimately, this collaboration enhances the overall user experience on Binge, building trust and encouraging more active participations in a crypto market. So, like, remember our mission, the mission for Bingx is to provide trustworthy and very user-friendly tools and product to use. And I think the integration of the Blockpot tax reporting tools is part of the journey that, I mean, very important component in Bingx, providing trustworthy and user-friendly product. And moreover, I think we like compliance is probably the, I mean, the key topic or the key concerns for the entire crypto industry this moment.
Future Directions and Safe Trading Environment
So for being asked, as reliable and responsible trading platforms, it's also our duty to ensure that people trading with us in a safe environment. By stating safe, I mean, they feel that trading activities on BNX will not cause them any trouble. So work with or partner with those tools. Tools to serve the compliance concerns will continue to be maybe one of the most important directions that we are going to explore in the future. Yeah, that's wonderful. I remember back in the days I was taking screenshots of my order history so I could actually file my taxes. Back in the days before I learned how to use APIs and linking them to like, you know, tax regulation companies.
Unique Approach to Crypto Tax Reporting
But that brings me back to my next question. What makes Blockpit's approach to crypto tax reporting so unique then? There are a few alternatives, a few options out there. I love to know a little bit more about Blockpit's approach and how do you guys ensure, you know, your services? Because compliance and regulations are always changing year by year.
Ensuring Competitiveness in Europe's Crypto Market
How do you guys ensure that you guys are definitely always on top of your game across Europe? For Florian, yeah, absolutely. I think I can only mirror Vivian here. So, like the core principles of our companies, I think they align a lot for us. It's also like trust and usability. So Dexs are a complex topic, right? And the more instruments you're using, and obviously you want to use all of them, the more complex it gets. So it needs to be usable, it needs to be easy to do, and nobody should become a tax expert just to trade crypto. That's our approach, really trying to serve the simple trader to the real DGN, as we like to call them, that. It goes into leverage products and derivatives and lp'ing and nfts and all of that. So that's the one side and the other one, which really, I think makes us unique, is that the trust topic was something that we focused on, like day one, like compliance and trust, not only to our users who use us, obviously they need to trust us with the data, with the results that they are getting, that they are correct, and obviously up to date with the jurisdiction, but also the other direction to the authorities.
Building Trust and Regulatory Compliance
And I think we're the only ones actually doing this. So we are quite heavily involved from the start of policymaking, all these new jurisdictions that are coming up with MICR and the crypto as a reporting framework, we have been involved, making them, I say, applicable, realistic, and actually makes sense also with all the new technological backing that we have, it makes sense as a regulation, and then working with the authorities in the respective countries by really laying open our algorithms, our code. You could also almost say it's like semi open source. Obviously, we're not going to open source everything to the competition, but we are open sourcing it to the authorities, which means blockbuster is not a black box where you put in numbers and you get a text result. It's actually completely transparent to the authorities on what's happening. And we've actually been approved by multiple countries so that our reports, they just get accepted without a second notice. I'm not sure if you got cut off there. Oh, there we go. You're back.
Expert Engagement and Tax Compliance
Can you still hear me? Okay, I'm not sure if there's something that got cut off, but I think the last component that I want to mention is obviously the tax experts, the cpas, right. So nowadays, we do have at least like ten to 20 cpas in every country that are specialized on crypto, and those are our partners. So we're working with them regularly on, obviously, keeping our framework up to date with any changes. We actually know about these changes way before they get enacted because we're so active in the policy making process, and that's what is really setting us apart. From the competition, who is more coming from a tech perspective, doing an app while we are really heavily also focusing on the regulatory perspective and policymaking, lobbying and staying in contact with the authorities. That'S really, that's actually really good to hear since, like, it really addresses a lot of, like, I think a lot of consumer concerns for those audience who might not be aware.
User-Friendly Tax Reporting Tools
But like, you can actually start for free on block pit and you can just start using their free portfolio tracking. Like, I remember when I started, like, I didn't know any about this, so I just use like Coingecko or Coinmarketcap to track my portfolio. But you can actually just track it directly and like, you know, in blockbit or even like other like crypto tax reporting software. But, you know, you might as well try it out. It is free right now. And, you know, when it's time for you to do your taxes, I think you'll actually find a lot more convenience since everything is in order already. But yeah, wonderful. I do have another question for Florian specifically. And then, you know, as you guys know, that, like now that real world asset tokenization is a pretty big thing. And, you know, of course, NFTs, I'm still waiting for a lot of liquidity go back to NFT market, but I have no doubt that will happen soon in the future. But that being said, like, how would block pit handle all these complexities regarding different tax jurisdictions, especially when it involves very diverse crypto assets like these RWA tokens or NFTs?
Complexities of Tax Jurisdictions
If you shed any light on this, I'd be grateful. Ryan? Yeah, definitely. So we do have crypto specific regulation in some countries, but actually most of them, they just apply existing regulation that we have for stocks and securities, commodities, and they kind of try to apply it to crypto, and that works out in some way, but it's never covering the whole space. So, nfTs, for example, great topic that you mentioned. There is no really clear regulation on NFTs in any country that's 100% clear. So what you really have to look at is what is behind the token? Is it a real world asset, as you said? Is it maybe any other asset that's giving you a right to something like dividends or whatever? Or is it like a payment utility token that you can just use within an ecosystem? And you have to really differentiate between those different types because they might fall into different tax categories.
Tax Framework and Data Management
We have, on the one hand, the regulatory approach. We'd call it a tax framework where we actually calculate based on your transaction history. And that's what we are keeping up to date and working with experts in the field and the authorities to do that. And obviously there's like this 1% that's unclear and where you can interpret a lot and can save a lot. And so we obviously interpret within the law in favor of the taxpayer. So we also show you those things that are not 100% clear, but you can interpret it to your benefit. And that's absolutely legal. And we do that for you. And then the other topic, and it's actually, I think the more challenging one even is the data sources. I myself am probably one of the more extreme ones with having an account that potentially every broker or exchange out there. I don't know how many wallets I use, like hardware wallets, then browser wallets, and really like unifying all the data from all those sources to your complete transaction history is also one of the challenges.
Managing Diverse Data Sources Effectively
And we are really trying to take our users by the hand to show them any gaps, anything they might have missed, because there's so much opportunity here to optimize if you have a gapless history. And also, obviously we need to import that and we need to import all the different assets, meaning there is an NFT gallery as well at blockbit. And as you said, you can use that for free. So we don't charge you for anything until you really want to do your tax decoration, do your tax optimization, but you can use our portfolio tracking, you can connect your APIs, you can connect your wallets, you can upload your CSVs, you can all do all of that for free and get your data clean and then look at the taxes afterwards. That's when we start charging you. A lot of competitors, they start charging you from day one and then their inputs might not work and you want your money back, we don't want that.
Tax Management and User Experience
Want you to have everything clean before we then need you to have a license. Because obviously we also need to live from something. Absolutely. Especially right now. Like, I believe everyone. If you're a trader right now, you got your open position. I've no doubt that everyone's going to be closing certain of their positions before the end of the year. So you definitely want to make sure that you have everything ready to do your file taxes. And I also like how you mentioned the gapless history. I think a lot of people don't realize how important it is to actually have, like, you know, all your tax history, especially regarding crypto, all safely stored in one area. So if you ever want to go back to check your 2023 or 2022 tax information, you can easily just go on to like blockbic and just check information is there.
User Experience and Historical Data Management
So actually having all that collate instead of like somewhere, you know, printed out on a piece of paper lost in your apartment, you definitely don't want that on your I wonderful, let's move on. I do have another question. I do am interested in understanding how this whole new tax tools available on binge is going to impact new user adoption. That's always a thing for all exchanges and of course the reliability and the trust, of course the brand of the platform. Perhaps Vivian, could you kindly tell us a little bit more and how we will be able to address this user adoption growth and reliability among european traders, especially those who really prioritize, of course, the regulatory compliance in this regard?
Impact of Tax Tools on User Adoption
Okay, no problem. I think the introduction of blood piece text tool on BX is like kind of the game changer for us, particularly for the european users who are highly focused on regulatory compliance. These tools provide user with a seamless way to manage their tax reporting directly within our platform, as mentioned by Florian, which significantly reduce the complexity and efforts involved in staying compliant with local laws. I mean, for european users, compliant with local laws is extremely important. So because their tax regulation are quite strict and quite varied, sometimes from country to country. So this feature is incredibly valuable to, I mean, to provide to our european users. It's not only simplify the tax process, but also ensure the accuracy, which is also critical in avoiding any potential issues with tax authorities.
Strengthening Trust through Compliance Tools
By integrating such trusted and reliable solution, we are reinforcing that binge as a platform that prioritize the needs and concerns of its user. So from all those aspects, I believe this will lead to an increased user adoption as traders will be more inclined to choose a platform that helps them meet their legal obligation without any hustle. Additionally, this move strengthens trust in Bingx as it shows our commitment to provide providing tools that support our user in all aspects of their trading journey and also that including regulatory compliance. So as I mentioned earlier, to make sure our product, our platform is easily, I mean, it's easily usable and we can help our user to meet their complying. Complying to regulatory compliance needs is, I mean, extremely crucial these days.
The Competitive Edge of Regulatory Compliance
So I think this kind of features in the future will become a competitive edge. Actually, people who are not, who are ignore those regulatory needs will soon find that people are inclined to treat with the platform, who take care of their needs from those aspects. So at being access all those regulatory related products will become, I mean, we hope it will become a key strength that we grab user, gain new user and maintain our old customers. Old users. Yeah, William, absolutely. I think you mentioned some really interesting points. This kind of, like, brought me at the time where I remember I was doing my taxes like three years ago, and for, and I use like a whole bunch of different exchanges back in time.
Navigating Tax Challenges in Cryptocurrency
And I actually had to, for one of the changes I was using, of course, no names, but I had to, I couldn't, like, import the API to the software I was using. So I actually had to, like, do it on CSV file. And then I realized, like, the template had to be like a very specific way, and it was just so stressful. So actually, and I remember, like, handling all that actually had very successful, positive experience with certain exchanges and not so much with certain other ones. And of course, when I was, my friends asked me about cryptocurrencies and where should they buy them, which exchange should they use. My first thought was, well, sooner or later you can do your taxes.
Influence of User Experience on Recommendations
You don't want to have to be dealing with CSV files. And that really heavily influenced what I actually recommended. So I think you made some really good points in that regard. Wonderful. Let's move on. My next question is for Florian, and this is regarding about data security. And since blockbit, you're dealing with crypto tax reporting, of course, portfolio tracking, there's a lot of, let's just say, sensitive information or private information. You will, that users would not ever want that to be leaked. So how does block pit really ensure that regional compliance and of course, user data is protected, given just the sensitive nature of the whole information that you're dealing with?
Data Security and User Protection
Absolutely. First, let me just say I have this same thing as you had. I closed down, I don't know, like 70, no names, but that shut down in 2022, right after a scandal, and you don't even get data anymore. So once again, like Echo, you have to have your documentation, like, knit tight. And then the sooner you start with this, the better it is. And you can do all of that for free, also with blockbit, so you don't have to worry about some data being missing in your complete history. And also coming to the topic of data security. Right? So we are a central european company, and I think, like Europe, it's, when it comes to data security, we might actually overdo it a little bit.
Regulatory Compliance and Data Protection
We have really strong security acts and privacy acts and all of that. And obviously, as a european company, we have to comply to all of those. So the most well known program is like the GDPR compliance, and we actually get audited on this on annual basis by one of the biggest audit firms in the world, which is basically about data privacy protection and not being able to handle any data or sending data to third parties. That's the biggest part. This audit report basically says we are 100% compliant with european laws, which are the strictest ones in the world. A second big topic is we actually don't use any cloud services to host our infrastructure.
Infrastructure and Data Privacy
There is no Amazon or Microsoft or Google Cloud where we host our infrastructure. All our tools and infrastructure is hosted on dedicated hardware located in multiple locations over Europe. Obviously to also have redundancies and backups and everything, but not being able to have, I don't know, for example, Google or Microsoft giving access to our user data because it's not hosted with them. So even if the authorities come or criminal investigation units, they go to one of the big ones and they say we need the data from the Google cloud, they cannot access it. So that's definitely one of the biggest things. And the good thing about crypto tax reporting is we don't need any private data of yours. So it doesn't really matter. We don't need your tax identification number or anything about that. But the only thing that we need to know to be able to get your tax report is in which country you are tax liable.
Data Requirements for Tax Reporting
We only need transaction data and a country flag to apply the right algorithm to your tax calculation. So you can use this completely pseudonymous, we don't need your name, we don't need your KYC data, we don't need your tax certification number. Just create an email or whatever. And you can use this because obviously you have to declare your taxes yourself, then we can't do that for you. We can't take authority. Only a tax accountant can do that for you, or you do it yourself. But we give you everything. So you just have to enter the numbers. And up to that point, we don't need any personalized data, so we don't have it, which means obviously we also really a victim for potential tax or actually like subpoenas from the government. Even if they come to us and say we want the data from this user, we can say we don't know.
On Compliance and Audits
Yes, because we don't have the data, but actually they don't want to do this because they actually want us to be able to provide users with us so that more people in the text. Absolutely. I think you made some, actually quite a few really good points there. I'm just really glad to hear that you guys are actually spend the cash on these audits. And I think a lot of audience, people in the audience might not be aware that these audits, they don't come cheap. So a company that actually take their audits seriously, that really is a. That says a lot of about the company. And that said, like, it's also another point that I want to point out is that the cloud service, there's, it's just there are, the tax surface is a lot wider than a lot of people think. So another reason why you should not be like keeping anything on like Google Drive, that's especially like sensitive information.
Upcoming Features and Developments
So for those who are interested in that, definitely go read more about that. Wonderful. Let's move on. And I do, I would love to know a little bit more about your upcoming features or any potential new development that's going on a block pick right now. As right now, 2024 is coming to an end. And of course we are real. Everyone thinks a lot of people are looking forward to the bull market really taking off in early 2025. If there's anything that you can shed light on in terms of blockbuster developments and anything that the listeners can actually look forward to, anything you can share over here, that'd be great rate.
Expansion and Tax Optimization
Absolutely. So obviously, one thing is that we are going to enter new jurisdictions. So we are right now available in Europe and the US, but obviously there are a lot of other jurisdictions that now are coming up with tax regulation on crypto. And we're having a keen eye on those markets and obviously are looking forward to enter asian markets in the near future. Future. And the second really big topic for us is obviously tax optimization. How can you save money? What are the possibilities? How can we, as a tool, show you those potential savings so that you, at the end of the year can harvest your losses, trade in a way to optimize this during the year?
User-Friendly Tools for Tax Management
Maybe think about the tax implications before you execute a trade. But that should be done within a few seconds. We are currently building an optimization suit where you can simulate trades and see the exact tax outcome. You can have different strategies. I want to cash out, I don't know, $2,000. We tell you what best to sell from a tax perspective. There's a lot of improvement here on how we can give you those tools, on really like getting the last buck out of your taxes and don't pay more than you ever have to. So that's a big focus as well for the months to come.
Collaboration with CPAs
And we are going to go more in the direction of like, serving cpas. So obviously in some countries, almost everybody has like a CPA tax accountant and having this cooperation so that you can share access to your account, to your CPA, having like log of all the changes for CPA and stuff like this, and cooperating on this. So there's going to come up a tool, especially for cpas, which makes it easier for them to manage the clients, help the clients, cooperate with the clients. So I guess those are definitely the top three topics right now that we have on the agenda.
Adapting to Market Changes
I say like next six to twelve months and then we'll see. Crypto market is moving so fast, we have to adapt. Whatever comes up, we're going to evaluate and prioritize. Absolutely. No doubt as we see more and more companies actually adopting cryptocurrencies, not just for like their product, for payments, but just to hold company assets. I think more and more of these accountants who work at these companies will absolutely, definitely appreciate tax reporting. Companies who provide that kind of package so they can actually easily be able to handle other company needs.
Integration and User Experience
So I thought it really would go a long way. My next question is for Vivian. It's kind of like the last question, but flipped for the exchange. And of course, now that the bull market really is starting to slowly take off, Vivian, how is Bingx planning to leverage the blockbuster integration to really enhance the Bingx services and of course, support the traders during this positively volatile period?
User Empowerment in the Bull Market
Okay. Yes, of course. So, I mean, in the current bull market, the volatility present both opportunities and challenges for traders. At binge, we are focused on empowering our user to make informed decision while ensuring that they remain compliant with regulatory requirement. This integration of blockpool plays a crucial role from these aspects. So during the bull market, trading volumes typically increase, which can make tax reporting more complex due to the sheer number of transactions and the potential for significant gains.
Streamlined Tax Reporting
By leveraging Blockpay's advanced tax reporting features, binge can offer traders a streamlined way to track their gains, manage their portfolios, and generate accurate tax report without being overwhelmed by the. So from that perspective, this integration will allow traders to stay focused on seizing market opportunities without adding the stress of dealing with complex tax calculations. So as gains accumulate, users can easily keep track of their tax liabilities and optimize their financial strategy strategies accordingly.
Personal Experience with Tax Management
This not only enhance the user experience, but also reinforce binge reputation as a platform that supports its traders through like every market condition, providing the tools that they need to navigate both the highs and lows effectively. So I also want to share some of my personal experience in like reporting the p and L actually, if people living in the western culture or countries, no matter it's us or like european countries, tax is quite complex. Like if you treat crypto and if you treat equities and actually there's a lot of space for explanation, or sometimes people will seek for tax deduction, all those kind of things.
Focus on Trading
I mean, if a trader wants to really focus on its trading, it's always good to have some handy tools to help them to manage the hassle from the tax reporting and tax management. So this is where I, as an individual, find the tools. Block pit provider. Especially useful for my, for me personally. So I believe this feature is not only for me, of course, also for, it is also good for people like me who have very diverse portfolio. Right.
Keeping Focused in a Volatile Market
And in a volatile market or bull market or bear market, or sometimes actually nowadays, it's like quite jumpy. Quite jumpy market. It's always good to keep those hustles outside the house and so that I can have a peace of mind to focus on my trading. Yeah, William, absolutely. This really just brings me up of some of my american expat friends and living in East Asia and how they actually have to report their taxes twice every year, once to their local government, of course, once back to the United States.
Tax Reporting for Expats
So I think when you actually have your cryptocurrency portfolio all ready to go on these tax reporting companies, it definitely saves your headache by two. All right, wonderful. Let's move on to my last question. This one's for Florian. I just want to know a little bit more about, like, you know, where do you see crypto tax landscape heading into the future? Especially, like, when it comes down to, like, global regulations, it's always changing and evolving. Like, how will block pit really continue to, of course, adapt to these changes and of course, innovate the whole tax reporting and tracking space.
The Future of Crypto Tax Regulation
So that's a really great point, maybe to close on tax regulation was not always on the forefront. It was more like animan honoring and all that stuff. But now that we have those in place, for a few years now, we're actually getting to the tax regulation on a global level. And actually, two years ago, the so called crypto asset reporting framework got passed, and 48 different countries participated in this. And what does it mean? It means that starting with, at latest, the 1 January 2026, all crypto asset service providers will need to basically report user data and transaction data of certain criteria to the local authorities, and then those authorities have to share it with the other ones.
Global Data Exchange for Tax Accountability
And this is not just limited to Europe. It also includes the US. It includes multiple of the OECD countries like Korea, Japan, Singapore. So there's really like a global exchange of data that's going to happen, which will provide the tax authorities in most of those countries with actual transaction history so they can check do you have tax liabilities? And then compare it to did you declare them? And if not, you might get a letter sent. And we see early implementations of this already in a few countries that started this year or next year, but the latest is going to be 2026.
Compliance Challenges Ahead
So that's probably the most noteworthy tax regulation on a global level that will kick off, I'd say, like a wave of tax compliance in at least those majority countries. And obviously for us, it is to stay ahead of the curve to already work with as many of those authorities in trying to always combine a little bit the needs of the crypto community with, you could say, almost a little bit old school regulators, so that everything that they really pass into law does make sense. It's not over regulating, it's actually applicable.
Setting Regulatory Standards
And then have as seamless as possible process by obviously also providing the technology for this data exchange, for the reporting, so that every stakeholder from the crypto trader to the crypto asset service providers to the regulator, kind of adhere to a standard that makes it as easy as possible. And that's kind of our mission, where we really see the opportunity for blockbust to help setting this standard. That's lovely here. I think that the more accessible, a lot easier all these new features related to crypto and of course, tax reporting gets.
Onboarding New Users
I think that more and more will be able to onboard a lot more people into the web three space. Wonderful. We do have time. So let's open up the floor to the audience. And I did pass the mic to Ben. Ben, you have the mic. You can turn on your speaker and ask your question. Just let us know who your question is for.
Customer Support for Users
Yeah, thank you for bringing me up. My question is for the luck. What kind of customer support is available for binges users who encounter issues or have a question related to blockbuster and tax reports?
Question for Vivian on Tax Reporting
All right, so I believe this question would probably best answered by Vivian. Vivian, any. Any idea about customer sort in this regard relating to tax reporting? Sorry, sorry. Can I repeat the question, sir? I think it's. We are happy to like if you forward every support request regarding the tax to us because we have a great support team which can help you with tax related questions. I think it's definitely our expertise. Expertise? It shouldn't be the expertise of the exchange. So, Ben, if you have any support requests in regards to taxation, feel free to reach out to me or our support team. We also have a telegram channel discord that's specifically for tax related questions, where cpas and experts are in there and are helping everybody on a daily basis.
Course of Action for Tax Reporting
Wonderful. Absolutely. I think that probably is the right course of action to go. If our customer support team ever got a question regarding tax report, I think that's something that we probably would have to relate to. Just please contact blockback because we've integrated with them. Wonderful. Let me see if I can pass a mic to someone else. I do see someone. Here we go. So I just pass the mic to gray. Gray. You should receive the mic in a few seconds, and you can turn on your mic and then ask your question.
Global Accessibility of Platform
Hello, am I optipool? Loud and clear. Go ahead. All right, thank you so much. My question is for blogpeeds. So I would like to know if, like, your platform operates globally. Like, can a user have access to your platforms services anywhere without any restrictions? Thank you. Yes. So we do operate globally. You can access our software from anywhere. There is, though, a little bit of a quality difference. So if we're working together with authorities in a country, then we get the approval of those authorities for reports, which includes that, like the US, Germany, Austria, Switzerland, Netherlands, the UK, France, Spain, Italy. While for other countries, we more have, like, a generic reporting where we don't have the 100% approval of the authorities yet. But obviously, we're trying to seek this cooperation with them.
Compliance with Tax Regulations
So you can use it. But it's specifically made for those jurisdictions, as I just named. All right, thank you. All right, so I just passed the mic to Diana. So, Diana, you should be able to connect in a few seconds. And then let's just give her a few seconds. Connect. There we go. So you have the mic. You can turn it on. Ask your question. Hello. My audible loud and clear. Okay. My question is, how does block peak ensure compliance with ever changing task regulations in the global crypto market? That would be my first question. Do you get me?
Working with Tax Experts
Sure. Absolutely. So I think we answered it a little bit in our discussion also with will. We are actually working with tax experts industry restrictions. So that's the first step. We are really looking for somebody who is established in a country, has an expertise for crypto taxation, and then work together on the tax framework of bringing this, let's say, law into code, and then obviously having an ongoing relationship with them on any changes that are upcoming so that we can implement them in the shortest time period possible. And then the second level is actually reaching out to the authorities in those kind countries and getting those reports approved. Right. Sending them this OSA. This is how we do it. This is the partner we're working with. Can you please check it if for you as an authority? This is compliant and.
Approval and Security in Reporting
Okay. And once we get that approval, I'd say that gives us like a 99.999% security that those reports will get accepted by authorities and are compliant with the countries. Wonderful. I pass the mic to Minkiss. I do see your hand going up. You should be able to get the mic in a few seconds. There we go. So you have the mic, you can ask a question loud and clear. Go ahead. All right, so my question is, what are the anticipated direction for the development, expansion of your ecosystem? Do you have any specific innovation or application in mind for the future growth of the technology within the ecosystem? Do you get me?
Future Growth of Technology
Yeah, I'm just trying to figure out who your question is for. Are you talking about like block picks, you know, tax reporting ecosystem, or you're talking about binge ecosystem? Yeah, yeah. Block, block pin. Okay. All right then. Happy to take that one. So, obviously, the ecosystem is going to grow country by country. Texas is always a country specific topic. It's different every country. There's no two countries that have the exact same regulation. So with every country that we add, we're going to grow our ecosystem. And obviously, also on the feature side, we are a tax reporting tool, first and foremost. So this is like the number one value that we give to users.
Data Integration and Portfolio Monitoring
But if you already connected all your wallets and exchange accounts to your blockbuster account, we have the data to also give you extended portfolio monitoring. You have your complete portfolio over all those accounts in one place, and you see exactly what you hold, where you hold it. If you're in a profit, in a loss, potentially holding periods that might lower your tax liabilities, how your portfolio developed over the time, over all those different accounts, over all those different, like, everything in one space. And we are working hard to add portfolio monitoring features on a weekly basis, basically to give you more and more insights, as obviously there's a lot of interesting data to be gained from combining all those different sources.
Portfolio Tracking and Community Growth
So that's also, I think, something that helps us in growing our community and ecosystem, especially because those features are free. So you can use the portfolio tracking. You only pay if you have to do your taxes, which sooner or later we hope. And that's our strategy. Somebody has to do wonderful. That's about it. With regards to time, thank you, everyone, for joining today. And thank you, Florian and Vivian, for sharing such insightful and valuable information and insights. For more information on crypto taxes, definitely be sure to visit blockbits website and definitely follow them on x.com dot.
Final Thoughts and Advice
Florian, do you have any last words that you want to share to the audience? Well, thanks for having me. It's been great. I'm baffled how many people tuned in. Just maybe one request that I have to everybody, and it's just because of my own pain. Start with your documentation as soon as possible. You can do that for free. It's just that you have it once you need it because I had to work up multiple years of the from a tax declaration and it was really hard to find the data. So just create an account, connect your data sources, have everything there, have it saved.
Importance of Early Documentation
So you don't need to do your taxes right now, but maybe you need to do it in two, three years, and then you want to get back to a gapless transaction history. And that's something that you should probably start today. I know from my own pain. Wonderful. Absolutely. I share the same pain with you. So if it makes anyone's life any easier, you definitely don't want to go through the same suffering as we did. So, yeah, absolutely. Start early and then if you figure out the kinks a lot earlier and not just like a week before, you have to file your taxes.
Closing Remarks
All right. Wonderful, everyone. Definitely stay tuned for more exciting amas from Bingx and by following our official x account. And, of course, thank you for tuning in today. I hope to see everyone again the next Ama. Have a good one.
