Blockpit, the Austrian cryptocurrency tax software company, has acquired rival company Accointing from crypto analytics firm, Glassnode in a “multi-million-dollar” cash deal. While the exact value of the deal was not revealed, the company says it was financed via debt issued by the company’s shareholders.
With the acquisition, Blockpit is now one of the largest crypto tax companies in the European Market, and joins the league of market giants such as TaxBit and CoinTracker. Furthermore, the acquisition comes at a time when the European Union is preparing to start enforcing the recently passed cryptocurrency rules, referred to as the Eighth Administrative Cooperation Directive (DAC8). The European Parliament passed the DAC8 rule last month, and they will complement Markets in Crypto Assets (MiCA) regulations, set to come into force in 2024.
The DAC8 rules require crypto companies to automatically share all customer crypto asset information with tax authorities in the EU block. The rules will come into force in 2025, meaning that EU members have about two years to begin implementing them. Therefore, it is understandable that companies in the crypto industry like Blockpit would start warming up to the changes and establishing their presence before the deadline.
Cryptocurrencies have proven their viability as investment assets and endured some of the most challenging financial environments over the past three years. This has obligated authorities to rethink their strategy, shifting from outright resistance and hardline stance against digital assets to one where crypto is embraced as an asset worthy of a clear regulatory environment and tax policy.
This is the second acquisition of a tax company by Blockpit, coming about three years after it acquired Cryptotax. With the strengthened muscle, the company is now better equipped to consolidate its position as a unified European crypto tax platform.
What next for Glassnode?
Following the sale of Accointing, Glassnode says it will restructure its infrastructure to focus on developing digital asset intelligence solutions. Specifically, the company aims to leverage its expertise in Bitcoin and Ethereum ecosystems to develop solutions that will help institutions navigate the DeFi space effectively.