Binocs, a crypto tax reporting app, aids customers in navigating laws

Binocs, a crypto tax reporting app, aids customers in navigating laws #Binocs #crypto #tax #reporting #app #aids #customers #navigating #laws Welcome to Americanah Blog, here is the new story we have for you today:

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Keeping up with tax compliance for cryptocurrencies can be challenging, particularly given the fact that many rules are recent (or don’t yet exist). Therefore, Binocs was established. Users can combine their wallets and exchanges, and Binocs offers a tax report and other financial information. Today, the firm revealed that it has raised $4 million to grow in countries like the US, UK, and Australia. BEENEXT and Arkam took the lead in the round, which also included Accel, Saison Capital, Premji Invest, Blume, and Better Capital.

In less than 30 minutes, Binocs may present a tax report. Taxes for derivatives, lending, and borrowing across CeFi and DeFi are likewise tracked, along with return on investment, earnings and losses, and capital exchanges. To help users understand how much tax they must pay, the app can provide users with information on fees and tax deducted at source and already paid on transactions.

Binocs, a Bangalore-based company founded in May 2022 by Tonmoy Shingal and Pankaj Garg, has more than 1,000 clients at the moment, including institutional and retail investors who require forensic accounting and risk management. With intentions to enter more markets the following month, Binocs is currently tax compliant in the United States, United Kingdom, Australia, South Africa, and India. A portion of the investment will go into product development and the go-to-market teams for institutional and retail investors at Binocs.

Binocs, according to Shingal, is intended to be a bridge that links blockchain transactions to the “web2 comparable compliance world,” particularly as the number of coins, exchanges, trade kinds, and DeFi protocols rises.

The creators of Binocs cite data from Coin Market Cap, according to which the entire market value of the cryptocurrency sector increased from around $325 billion in September 2020 to $1 trillion in September 2022. The whole tax obligation is around $70 billion with a blended tax of roughly 20%; this amount may rise to $300 billion by 2026.

By the end of this year, there should be roughly 1 billion crypto users, up from the present 300 million.

According to Shingal, the CEO of the startup, crypto hedges and investment funds frequently operate with a small staff, and the process of calculating tax and performing compliance is time-consuming because they must combine data from various sources, follow various compliance and reporting regulations for each type of transaction, and pull data from multiple sources.

“The conventional method is to manually compile and understand the blockchain trade ledgers. This needs a lot of work, technical understanding of cryptographic transactions, and familiarity with local laws, according to Shingal. This process takes a lot of time and is prone to mistakes, which could be expensive.

Approximately 15 to 20 nations presently tax cryptocurrency investments, and 60 to 70 more will do so in the future, according to him. Regulations are also one of the main barriers to greater adoption of cryptocurrencies. As it collects more data, Binocs intends to build more applications on top of its technology. In the future, we will design applications for a variety of use cases on top of what we already know about crypto transactions, according to Shingal.

Currently in pre-revenue, Binocs will monetize through a freemium business model and an enterprise plan for corporate investors.

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