European Crypto Tax Companies Announce Merger to Power US Expansion

The merger means Blockpit and Crypto Tax can look at taking their newly combined regtech offering to the lucrative U.S. market.

AccessTimeIconSep 8, 2020 at 11:55 a.m. UTC
Updated May 9, 2023 at 3:11 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Two of Europe's largest crypto tax reporting firms are to merge in an effort to turbocharge a planned expansion into the U.S. market.

  • Austria-based Blockpit and Germany's Crypto Tax announced the merger Tuesday, saying they would start offering a range of compliance and tax services, all under one roof.
  • Crypto Tax provides tax reporting frameworks, for crypto and non-crypto assets such as traditional securities, that can be adjusted to different countries; Blockpit offers tax reporting and know-your-transaction (KYT) compliance tools.
  • Klaus Himmer, co-founder and managing director of CryptoTax, and Florian Wimmer, founder, and CEO of Blockpit, told CoinDesk the merger will make them a full-scale regtech company.
  • The new company will trade under the "Blockpit" brand, but will retain the "Crypto Tax" name for the taxation services.
  • Structured by Austrian M&A specialist Venionaire, Wimmer said the merger was close to a 50:50 deal.
  • Blockpit's existing offices in Linz will become the new headquarters for the newly merged company, with Crypto Tax's offices in Munich to be retained.
  • A tax solution had already been developed by Crypto Tax but has yet to be rolled out.
  • The new company, already prevalent in the German-speaking world, will now turn its attention to rolling out specialized regtech products in the much-larger U.S. market.
  • The new Blockpit plans to raise €1.6 million (~$1.9 million) from both companies' existing investors and get the ball rolling on an extended Series C to fund the U.S. move.
  • A prospective expansion to other English-speaking countries, as well as the Asian markets, is in the works for 2021.
  • Wimmer said the merger has likely saved both companies a year or so building out products the other company already had.

Edit (12:57 UTC, Sept. 8, 2020): Clarifies details of the business offerings of Blockpit.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.