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Nexo, a lending platform that provides instant crypto loans, has partnered with Koinly to simplify user’s tax reporting.
Effective November 30, 2023, the collaboration enables Nexo users to easily generate tailored crypto tax reports. A company statement said that the partnership will streamline the crypto tax reporting and preparation of financial statements.
Further, Koinly allows Nexo users to cater to their specific transaction histories and tax obligations through the Nexo app. Nexo clients can also access custom country-wise tax reports for over 100 jurisdictions.
“Our partnership with Koinly reflects our dedication to providing holistic financial solutions and empowering our clients to make informed financial decisions,” said Antoni Trenchev, co-founder and Managing Partner of Nexo.
Additionally, the company noted that the service automates accurate tax reports, simplifying tax complications and reducing human error. Nexo users can avail the service for free up to 800 transactions annually. For users exceeding this transaction volume, a 30% discount is offered on Koinly.
The news comes months after Nexo launched a crypto-powered debit and credit MasterCard for users in the European Economic Area. Dubbed the Nexo “Dual Mode Crypto” Card offers a variety of features including the ability to optimize tax responsibilities.
Simplification of Crypto Taxation
With the growth of Web3 activity, accounting for crypto gains and losses is becoming a common pain point for users and businesses alike. According to a July IMF report, the most fundamental difficulty in taxing crypto assets is that they are “pseudonymous.”
For instance, Web3 firms need to track transactions across multiple blockchains and wallets to properly report crypto gains and losses on their business tax returns. This requires deep blockchain data integrations.
Adam Saville Brown, Head of Partnerships at Koinly, highlighted that the collaboration is a milestone for simplification of crypto taxes.
“The collaboration aligns with Koinly’s mission to service the tax needs of crypto investors and with Nexo’s innovative approach in the crypto financial services sector.”
Nexo is also planning to launch educational materials on cryptocurrency tax reporting, the statement added.
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