2 - 3 minute read
As cryptocurrencies increasingly fall under the purview of global tax authorities, digital bank Revolut has partnered with cryptocurrency tax solution Koinly to integrate an automated tax reporting service for its users. The service allows users to generate cryptocurrency tax reports to work out gains and losses. Revolut users will be able to synchronize their cryptocurrency transaction history with Koinly to expedite tax calculations.
Revolut serves over 18 million users across a number of different jurisdictions around the world following the acquisition of a banking license in Lithuania in late 2018. The digital bank has been offering cryptocurrency custody services since Dec. 2017. The fintech firm has since expanded its services around the world in conjunction with regulatory compliance processes in various countries. This includes receiving a green light from the United Kingdom’s Financial Conduct Authority (FCA) in Sep. 2022 to offer cryptocurrency products and services in the country.
Koinly’s head of tax Danny Talwar previously highlighted the importance of cryptocurrency tax services in helping citizens in the United States take advantage of ‘tax loss harvesting’. Speaking to Cointelegraph ahead of the U.S. tax deadline in April 2023, Talwar said that taxpayers would do well to take advantage of depressed cryptocurrency markets to reduce their tax liabilities.
The Bottom Line
Revolut’s partnership with Koinly to integrate an automated tax reporting service is a positive development for cryptocurrency users. The service allows users to work out their gains and losses, reducing tax liabilities. The discounted onboarding process facilitated through the Revolut mobile app is attractive to new Koinly customers. Traders need to be aware of their tax liabilities and take advantage of tax loss harvesting opportunities in depressed cryptocurrency markets. Revolut’s expansion of its cryptocurrency-related services globally is a sign of the growing acceptance of cryptocurrencies as a legitimate asset class.