As digital assets became more widely accepted, the need “for corresponding tooling to meet accounting, reporting and tax requirements of both individuals and corporate users grew,” according to an update from FT Partners.
Initially operating largely out of sight, tax authorities across the globe “noted the surging value of digital assets and the increasing number of retail and institutional players within new digital asset markets.”
FT Partners also mentioned that following a long period in which cryptocurrency traders and participants in the broader ecosystem were largely left to their own devices, tax authorities now apply “increasingly elevated levels of scrutiny and enforcement action.”
In response, consumers and enterprises “seek the means to both reactively and proactively ensure compliance with tax regimes.”
In many cases, tax reporting requirements “coincide with the need for enterprise-scale accounting and reporting solutions.”
Recent market turbulence as the consequence of FTX’s failure further underlines and incentivizes “the need for appropriate accounting tools and procedures, whether for risk management, reporting purposes, or tax loss harvesting.”
FT Partners’ report provides an overview of solutions “designed to help meet reporting and tax obligations across a range of jurisdictions, including both general accounting and tax-reporting specific solutions targeting individuals, organizations, and tax professionals.”
Despite the challenging market conditions, FT Partners claims that it “continues to generate great outcomes for [their] clients.”
Their combination of extensive industry and advisory expertise, entrepreneurial mindset, expansive global relationships, and corporate structure enables them to provide advice that should help drive long-term value for all stakeholders.
FT Partners Research has shared the publication of their new in-depth industry research report, “Blockchain Accounting & Tax Solutions: Automation for the Digital Assets Ecosystem.”
As covered earlier this year, FT Partners Research announced the publication of their Q3 2022 Crypto & Capital Markets Tech Insights report, providing the review of global deal activity for the Crypto & Blockchain and Wealth & Capital Markets Tech sectors “with analysis across private company financings, IPOs, and M&A transactions.” FT Partners is the top boutique investment in the Fintech sector, having participated in most of the prominent investing rounds for the most prominent Fintechs and thus has keen insight into innovative financial services firms.
