Money is destined to become digital.
Since the first iteration of money, we have seen constant changes. From coins to paper notes to cheques and plastic notes. Today, we are seeing the revolution of digital, instant payments through platforms like PayPal and contactless payment, which brings digital currency to mass adoption.
Since crypto’s recent boom, we even see videos on social media of children in Africa paying for food and bus trips with BTC lightning payments because the speed is quicker than the local digital currency. There is no indication that this trend isn’t going to continue as we move towards a digital environment.
There are generations who are going through school who have only experienced digital currency, and when they enter society as adults, we will see even greater adoption and innovation in the digital currency space.
Making life easier for accountants dealing with crypto
Koinly is excited to see what innovation can come from a new wave of entrepreneurs, accountants and payment professionals as they help us shape the future of money and currency – facilitated by worldwide currencies and decentralised finance.
Whenever there has been rapid innovation in a space that is closely aligned with a government’s security interests, such as energy, finance, raw materials etc. It has always been the role of the government to provide guidance to ensure there is controlled innovation that has the country’s best interest at heart.
Most accountants are still in the dark ages
Many accountants are still weary of crypto and the lack of guidance from their governments. Reporting crypto taxes is often a complex and daunting task for many; however, with the help of modern accounting tools, it doesn’t have to be.
Being compliant with regulations can be costly and time-consuming, but it doesn’t have to be. Regulatory pressures will likely increase in the future, so it’s essential to be ahead of the curve and use accounting tools to make life easier, not harder.
Automated tax reporting for cryptocurrency
What was once a fringe interest is now becoming mainstream. With the advent of digital currency, the financial industry is seeing a new asset class emerging that is quickly becoming popular with consumers and investors alike. Along with this comes the need for new tools to help manage these assets. One such tool is Koinly, which offers automatic tax reporting for cryptocurrency.
With Koinly, users can connect their wallets and exchanges and generate a detailed report of their capital gains and losses. This report can then be used to file their taxes. Koinly currently supports over 2,500 different cryptocurrencies and tokens, making it one of the most comprehensive tax reporting tools in the market.
Understanding and making crypto-related tax easier
Taxation on digital assets, the framework in which we account for digital assets and their financial value, and the regulations that come with that are an essential part of innovation as these solutions become adopted by the wider population.
With Koinly, It is a pleasure to be at the forefront of innovation and to be able to provide a solution that helps navigate a tricky ecosystem that has so far seemed complicated and unclear.
The bottom line
It is our job at Koinly to make the less glamorous side of digital assets, such as regulation and taxation, to be more transparent and easier to report on. While at the same time providing security, clarity and confidence to our customers, our everyday digital currency investors, and the accountants that they work with.
I look forward to being a part of Koinly’s launch in Australia and what we can bring to the market for years to come.
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About the Author: Adam Saville-Brown is a serial entrepreneur and Crypto-currency expert who has had an extensive 13-year career in the business, sales, finance and currency sectors. As Country Manager at Koinly, Adam oversees the growth of the team as Koinly expands its presence into Australia. Working across sales, marketing and support aspects on the ground.
Having seen the emerging applications of Crypto and Web 3.0, along with buying his first bitcoin at $4 in 2011, Adam diverted his attention to the application of smart contracts and blockchain to verify transactions of physical assets, leveraging blockchain technology to verify ownership. Adam has been a full-time day trader for 9 months, using the capital gained to finance his start-up, bridging the gap between the instance of the internet we know today and the roadmap of technology for the next 5 years.
Editor: Derin Cag, Founder of Fintechly.