Crypto data platform Glassnode sells Bitcoin tax software to Blockchain

Cryptocurrency intelligence firm Glassnode says it is dropping projects related to cryptocurrencies to focus on new solutions aimed at institutional investors and decentralized finance (DeFi).

Glassnode announced on November 6 that it has sold its crypto-based tax platform known as Blockpit Accounting to European crypto compliance provider. The companies declined to disclose the size of the deal to Cointelegraph, saying only that the transaction was a “multi-million dollar deal.”

“Glassnode will exit the crypto tax space from the sale of Accointing to Blockpit,” the spokesperson said, adding that the deal will allow the company to further focus on delivering new digital asset intelligence solutions to its institutional clients.

A Glassnode representative added, “We have used the past months to reshape our infrastructure, enabling future expansion into DeFi data solutions and other areas of the digital asset ecosystem.”

After building the main on-chain data platform for Bitcoin and Ethereum, we are currently expanding our product offering into DeFi. Our goal is to equip institutions with tools to help them trade in DeFi data and the DeFi space.

The transaction comes a year after Glassnode acquired Accointing to introduce tax reporting completion tools to its platform in October 2022.

Acoting's acquisition marks another move by Blockpit to merge with competitors. The platform previously merged with German rival platform Cryptotax in 2020. Its recent acquisition, Blockpit, has reiterated its ambition and vision for a consolidated and unified crypto-tax platform for Europe.

Florian Wimmer, co-founder and CEO of Blockpit, told Cointelegraph: “Since Blockpit and the crowdfunding platform have similar characteristics, the acquisition is indeed a perfect opportunity.

Related: 5 Nations Challenge Crypto Experts and Investigators to Target Tax Crimes

Wimmer Accounting says users can “easily migrate their profiles and data to a new Blockpit account, which he promises will take just a few minutes. Accounting migration will allow Blockpit to focus all of their shared resources on developing a unified platform, offering more features and providing a better customer experience,” the CEO added. They explained.

“At the same time, Blockpit doubles the revenue without increasing the cost – because we close the anointing infrastructure in a short period of time – significantly increasing our cash flow.”

With reference to the Crypto-Asset Reporting Framework, or CARF, and the crypto-tax reporting regulation known as the Administrative Cooperation Directive, or DAC8, the agreement's timing is also perfect, Wimmer said.

“Starting in 2026, all crypto asset service providers, custodians, exchanges, brokers and other users will be required to report your customer information alongside transaction information to tax authorities,” Wimmer said. According to the executive, the next regulations will “significantly increase the enforcement and prosecution of tax evaders.”

Formally adopted in October 2023, DAC8 is intended to give tax collectors the power to monitor and assess every cryptocurrency transaction carried out by individuals or entities in any EU member state.

Magazine: Best and worst countries for crypto tax — Plus crypto tax tips