Binocs, the crypto-related tax returns app, has announced that it recently secured $4 million in seed capital, led by a number of VCs. According to a press release on Thursday, the seed round was co-led by Beenext and Arkam. Accel, Saison Capital, and Better Capital were the other supporting investors. Binocs will use the new capital to enter new markets and increase its focus on institutional crypto investors. Venture capitalists are still trying to get the most out of the crypto market despite the long crypto winter. This demonstrates that the industry is still remarkably resilient.
Binocs targeting the fast-growing crypto tax market
According to Binocs, there is a massive opportunity in the crypto tax industry. The company says that if the total market valuation of cryptocurrencies is divided evenly between short-term and long-term capital gains and a blended tax rate of roughly 20% is applied, the potential tax burden that might be imposed on investors is estimated to be around $70 billion.
As crypto continues to increase in popularity and acceptance, there will be a significant window of opportunity to develop user-friendly, highly effective tax reporting systems.
The breadth of supported activities on the Binocs platform extends far beyond the standard buy/sell exchanges. It also includes assets in Traditional Finance, staking and airdrops. Investors may use Binocs to track their holdings across more than 300 exchanges, 50 wallets, NFTs, and smart contracts. This makes it possible to compute taxes while still complying with local regulations and legislation.
According to the press announcement, it can sync with users’ cryptocurrency wallets and exchange accounts. This enables them to monitor their portfolio value and get quarterly and annual tax statements.
The firm has over a thousand clients and claims that its app can calculate crypto taxes in under 30 minutes. In addition to the United States, the United Kingdom, Australia, South Africa, and India, the startup is also working toward tax compliance in other countries in the near future. It says that there are presently twenty nations with cryptocurrency tax legislation and compliances in place. Furthermore, another fifty countries will likely follow suit in the near future.