We Can Help Regardless of Your Trading Strategy!

Major marketplaces offer convenient tools and APIs for faster integration, but rest assured, we’re equipped to cater to your needs, whether you use mainstream wallets or prefer to safeguard your coins in cold storage. Collaboratively, we will devise tracking and reporting strategies that ensure full compliance with both state and Federal reporting requirements.

While it’s evident that being on a mainstream platform can reduce your compliance costs, we firmly believe that the potential for substantial gains should not be sacrificed for the sake of minor savings come tax time. If your strategy necessitates customized tracking and reporting, our cryptocurrency CPA firm is ready to establish the requisite systems.

Our expert cryptocurrency accountants possess the expertise to manage your records effectively across all platforms.

New and Novel Securities

NFTs, short for non-fungible tokens, represent an innovative asset class within the realm of Web3. While NFTs initially gained prominence for their association with JPEG images, their underlying technology introduces a novel and potent approach to the transfer of digital rights. The art community has readily embraced NFTs as a solution to ownership and scarcity challenges presented by the era of perfect digital replication.

However, the landscape is evolving, with the emergence of real-world asset-backed NFTs and real estate tokenization via NFTs, among other blockchain security assets, challenging the status quo. Those engaged in NFT trading may encounter compliance matters, ranging from straightforward to intricate. Meanwhile, individuals involved in the creation of NFTs should also consider the potential tax implications of this new revenue stream.

Compliance Issues for New Legal Structures

The internet and the rise of new technologies have led to a transformation of traditional business models. Established structures such as corporations, dating back to the 1600s, and limited liability companies (LLCs), introduced in 1977, may seem out of place in today’s world of international business, where ownership can change hands instantly.

The concept of the DAO (Decentralized Autonomous Organization) challenges existing legal frameworks for managing autonomous organizations without a central physical location for tax authorities to assert jurisdiction. The notion of ‘nexus,’ or the location where business activities occur, raises interesting questions about how these new DAOs will be regulated and taxed.

For those operating DAOs from within the United States, thoughtful consideration is crucial regarding their approach to the IRS and state treasury departments to ensure compliance.