Revolut, one of the world’s most popular digital banks, is partnering with Koinly, a leading cryptocurrency tax software provider, to offer a crypto tax reporting service. The move is aimed at helping Revolut’s cryptocurrency users to comply with tax regulations and report their crypto taxes to the relevant authorities.
Cryptocurrency taxation has become an increasingly important issue in recent years, as governments around the world have sought to regulate and tax the digital assets. In many countries, including the UK and the US, cryptocurrency gains are taxable, and failure to report these gains can result in penalties and other legal consequences.
Revolut’s partnership with Koinly is designed to simplify the tax reporting process for its cryptocurrency users. Koinly’s software automatically calculates taxable gains and generates tax reports, making it easier for Revolut users to comply with tax regulations.
Revolut’s cryptocurrency offering has grown rapidly in recent years, with over 13 million users now able to buy, hold, and sell cryptocurrencies including Bitcoin, Ethereum, and Litecoin. The addition of Koinly’s tax reporting service is likely to make the platform even more attractive to cryptocurrency investors, as it will help them to manage their tax affairs more easily and avoid penalties.
According to a statement by Koinly, their software is able to integrate with over 12,000 different cryptocurrencies and over 600 different exchanges, making it suitable for a wide range of users. The company also claims that its software is highly accurate and can detect errors and discrepancies in user data, helping to ensure compliance with tax regulations.
Revolut’s decision to offer a tax reporting service for cryptocurrency users is part of a broader trend in the industry, as more companies recognize the importance of tax compliance for their users. In the US, cryptocurrency exchange Coinbase recently launched its own tax reporting service, while in the UK, HM Revenue & Customs (HMRC) has issued guidance for cryptocurrency users on how to report their taxes.
However, there remain significant challenges for cryptocurrency users when it comes to tax reporting. Many investors may not be aware of their tax obligations, or may not have accurate records of cryptocurrency transactions. In addition, the highly volatile nature of cryptocurrencies can make determining taxable gains and losses more complex.
To address these challenges, Revolut and Koinly will be offering educational resources and support for users to help them understand their tax obligations and navigate the tax reporting process.
In conclusion, Revolut’s partnership with Koinly for a crypto tax reporting service is a welcome development for cryptocurrency investors. As the industry matures and regulators become more active in enforcing tax compliance, having access to accurate and easy-to-use tax reporting tools will become increasingly important for users. By partnering with Koinly, Revolut is showing its commitment to providing a comprehensive cryptocurrency service that meets the needs of its users, and helps them to stay on the right side of the law.
Revolut, the digital banking and trading platform, has partnered with crypto tax reporting service Koinly to offer users access to an external tax reporting service at discounted prices. The collaboration “furthers Revolut’s mission to build the first super app for all-things-money,” according to a company statement. Integrating Koinly into Revolut’s crypto tax reporting feature will relieve users of a stressful, time-consuming and inaccurate manual calculation process. The feature is accessible in the Crypto section of the Revolut app, available after completing the sign-up process through Single Sign-On.
Koinly has the expertise to generate reports that integrate transactions with more than 1,700 tokens, 170 supported blockchains, 100 wallets and is available in 34 markets. Revolut supports the acquisition and sale of tokens from a portfolio of more than 100 cryptocurrencies. In addition, Revolut allows users to test and trade more than 12 Crypto Collections and enhance their knowledge of crypto with Learn & Earn.
Filing taxes for cryptocurrency and other digital assets is a challenge for many of Revolut’s customers, said Mazen Eljundi, business head of crypto at Revolut. The search for a tax reporting solution culminated in the partnership with Koinly to “seamlessly track, consolidate, and generate a tax report in a matter of minutes, in order to meet our customers’ needs. We are confident that the crypto tax service offered through our partnership with Koinly will make this legally required activity easier, less stressful, and more accessible to all,” he added.
Revolut customers can report their crypto income tax with Koinly, significantly reducing friction, said Jane McEvoy, global head of partnerships at Koinly. The partnership “further bolsters their already robust value proposition,” McEvoy added, and Revolut users can now access Koinly directly via the Revolut app, improving the crypto tax calculation process.
The final price paid by customers will depend on the number of crypto transactions they make using Revolut or other platforms selected by the customer, including a discount of up to 60%. After synchronising their transactions made through Revolut, customers will need to review the reported transactions, and at check-out, they will be informed of the cost of the service. Once the report is paid for and downloaded, the customer can use it to complete their tax filings with the relevant tax authorities in their jurisdiction.
The partnership between Revolut and Koinly aims to empower Revolut customers to meet their tax obligations while building a safer and compliant ecosystem in the crypto industry. Compliance with applicable requirements is central to everything Revolut does. Therefore the partnership is “a significant step towards empowering Revolut customers to meet their tax obligations,” said Eljundi.