Investors have had years to get used to accounting for tax on traditional asset classes such as equities and bonds. But the soaring popularity of cryptocurrencies and related assets brings new challenges for both retail and professional investors. Enter Binocs, a fintech start-up that is today announcing the successful completion of a $4 million seed fundraising as it launches a tax and compliance solution for crypto investors.
The focus of regulatory and tax authorities on crypto is growing worldwide, argues Tonmoy Shingal, CEO and co-founder of Binocs. “We’ve already seen more than 20 countries make changes to tax and regulation in response to crypto and I expect another 50 to do the same over the next few years,” Shingal says. “This is something investors are going to have to manage very carefully.”
The problem for investors – in both the retail and the institutional space – is that