CoinLedger, a technology platform that specializes in software for reporting cryptocurrency taxes, announced a partnership with MetaMask, a self-custody wallet provider for Web3, on March 18th.
This partnership aims to enhance the interoperability and functionality for MetaMask users. By connecting their accounts, users can now easily load their transaction history into CoinLedger’s tax reporting software with just one click. This simplifies the process of gathering, transposing, and combining tax reports from different accounts and wallets.
David Kemmerer, co-founder and CEO of CoinLedger, stated that this partnership allows for seamless integration with MetaMask’s Portfolio offering. He emphasized that by reducing the difficulties associated with calculating and reporting taxes, they are making the cryptocurrency ecosystem more accessible to everyone.
The timing of this partnership is crucial for digital asset owners and traders within the MetaMask/CoinLedger ecosystem. With the tax reporting deadline of April 15th approaching for most US taxpayers, individuals who have engaged in buying, receiving, selling, or gifting cryptocurrency and other digital assets must adapt to the evolving financial landscape.
Expert opinions on tax compliance within the cryptocurrency industry vary widely. Some recognize the necessity for adjustments to prevent crypto firms and large investors from exceeding the boundaries set by regulations, while others believe it is impossible for cryptocurrency enthusiasts to fully comply with the existing laws.
At the institutional level, the Biden administration is considering the implementation of a 30% excise tax on cryptocurrency mining. This proposal aims to tax any company that utilizes computer resources for mining digital assets, irrespective of whether they own or lease the equipment and space. The tax would be phased in over three years, starting at 10% and gradually increasing to 20% in the second year, before reaching the full 30% in the third year. Pierre Rochard from Riot Platform has pointed out that this tax would apply to mining firms regardless of their use of grid or off-grid resources, such as solar and wind power.
In related news, CoinLedger reported that crypto investors made an average gain of $887 in 2023.