How @O2K Helps Clients Tackle Crypto Taxation

Crypto has been a vague and distant concept to a lot of professionals since its establishment via Bitcoin in 2011. A world of memes, abbreviations and “community building” that seemed so disconnected from the world of corporate. High necked collars, black suits and ties, screens with numbers, strategy and law articles have found it really difficult to pay attention to this hype of digital currency. Many questions arise that they don’t have answers to. Is it safe? Can it be regulated? Are investors protected? 

Likewise, crypto nerds sometimes don’t understand the world of suit-and-ties. There exists a chasm that seemed like it couldn’t be bridged. Each party faced their own business and tried not to clash (except, of course in cases of scams and investor hurt).

These past few years, these two estranged worlds have seen more collisions than ever. With the collapse of FTX, the Monero problem, threats of money-laundering, etc, it has become clear that it is necessary for both sides of the divide to work together to make the most out of this new tech.

There is a growing importance to understand and comply with crypto regulations. O2K Consulting helps achieve just this. We are a foremost consulting company in the crypto tax industry, and we  help clients navigate and understand the concept of crypto assets, their international tax treatment and regulation. We provide tailored crypto solutions; teaching what crypto assets are, and helping professionals stay up to date to handle crypto clients. We also teach and provide crypto regulation / compliance training to governments and organizations.

Understanding Crypto Taxation

Crypto taxation refers to the financial obligations placed by the government on citizens who transact crypto. In some jurisdictions where there is clear legislation, you have to account for and report your crypto activities and transactions to tax authorities.

Different jurisdictions treat crypto in different ways. Over the past few years, we have seen interesting reactions to this digital currency; ranging from outright bans to treating crypto as property or assets when taxing.

The major challenge faced by clients who are struggling with taxation is the lack of uniformity in international standards, especially because this sphere is still advancing all over the world. The tax treatment in one country cannot be mimicked in another country. For digital nomads or companies with branches in other countries, understanding and complying with the taxation regulations in each country is complex work.

O2K’s Crypto Taxation Solutions

@O2K provides clarity to this ambiguous crypto sector through 3 major avenues:

1. Education: Constant and updated education is very important in the crypto industry, particularly the area of regulation and taxation. We contribute to this through our courses, webinars and blogs .Our courses were built with two sets of people in mind. First, the professionals (e.g. tax lawyers, accountants, law makers, etc.) who have questions pertaining to crypto taxation. Secondly, crypto investors who know next to nothing about law. Having a holistic view of the crypto industry will take too much time, and our courses exist to shorten this time. These courses are the only ones on the market that cover everything from an international taxation perspective. They are peer-reviewed, and you can also learn at your own pace. Topics covered include: What is blockchain? What is crypto mining? Classification of Crypto assets, Classification of Taxpayers in the Crypto Industry, etc. Our webinars and blogs are free resources released monthly and weekly respectively, providing enlightening content and answering various questions that you might have.

2. Training: We offer training to companies and their staff. These trainings can take the form of on-site classes, virtual training and tailor-made courses. We also offer this service to governments worldwide that want to build a tax framework for crypto or train the officials. Through the community of professionals we have built at Crypto Tax Form, there is almost no country that we cannot service.

‍

3. Consultancy: We pride ourselves on being the leading authority in international crypto taxation. Therefore, our team of professionals provide consulting services to individuals,companies and governments on this subject matter.

Importance of Employing Professionals like us for your Taxation Purposes

So many things can go wrong when you try to do your crypto taxes by yourself. Here are some reasons why it is best to consult when doing your crypto taxes:

1. Complexity: Crypto tax regulations can be intricate and vary by jurisdiction. Professionals in our firm can navigate these complexities efficiently, ensuring accuracy in your crypto tax reporting and compliance.
2. Time-saving: Managing crypto transactions for tax purposes can consume a lot of time, particularly if you are an active trader or run a business with numerous transactions. More time is freed up when this task is outsourced to a firm, and you get to focus on other core activities important to your business.
3. Expertise: We have specialized knowledge and expertise in navigating the unique tax considerations associated with cryptocurrencies on an international scale. We always stay abreast of changes in tax laws and regulations in various jurisdictions, and are in the best position to provide you with reliable guidance and advice.
4. Risk mitigation: Incorrectly reporting crypto transactions or failing to comply with tax regulations can result in penalties or legal consequences (sometimes as hefty as jail time). By investing in qualified professionals, you can mitigate the risk of errors and ensure you remain in good standing with tax authorities.
5. Peace of mind: Delegating crypto tax responsibilities to a professional firm like ours will give you peace of mind, knowing that your taxes are being handled correctly and in accordance with all applicable laws and regulations in your jurisdiction.

Compliance and Accuracy

At @O2K, we are committed to ensuring compliance with the tax regulations in the jurisdictions of our clients. We sometimes receive convoluted financial reports (of individuals and companies) and we painstakingly make sense of them to the advantage of our clients.

We also built a community called Crypto Tax Forum, with a yearly conference where experts discuss crypto taxation and compliance topics. Members of the forum are the speakers and they consist of professionals in different fields (eg. auditors, law enforcement, crypto traders, lawyers, tax professionals, etc.) in several countries of the world. Due to the niche and expert community we have built, we always stay up-to-date with evolving tax laws and regulations. 

To speak to us, send an email to info@o2k.tech. You can also follow us on LinkedIn, Facebook and Twitter for helpful resources and guides.

‍