Cryptocurrency companies across the globe have begun working by keeping real-world use cases in mind. A survey of the cryptocurrency space showed that users wanted to use crypto applications that would cater to their need for easy access and increased credibility in the industry.
The growth of digital assets was again illustrated when CoinTracker announced that a hundred thousand users had crossed their platforms. The achievement comes two years after the official launch of CoinTracker.
CoinTracker’s progress has been steady since its launch in 2018. Aside from crossing the 100,000 mark, the company has also onboarded six new partners. The new partners were Casa, Cypto.com. ErisX, IDEX, Lollo, and Compound. The founders admitted that their mission of bringing economic stability to the world had come to a halt because of the rampant spread of the Coronavirus.
CoinTracker added that the new partnerships will make cryptocurrency taxes simple with more developments pending in the pipeline. Chandhan Lodha, one of the co-founders of CoinTracker added:
“What we have uniquely seen with cryptocurrency though, is a surge of retail demand for new users trying to buy the dip. Along with this surge in demand has been increased desire from cryptocurrency platforms to have a compliant tax solution for their users, and this is where our partners such as Casa, Coinbase, Compound, Crypto.com, ErisX, IDEX, Lolli, and TurboTax have partnered with us to make cryptocurrency simple.”
According to the founders, the partnerships were mutually beneficial. CoinTracker and Casa will work together to give their users’ access to multi-signature security. The concept of multi-sig is popular in the cryptocurrency industry because of a multitude of advantages, especially in terms of privacy. At the same time, the Crypto.com partnership will enable members to report their crypto holdings for multiple jurisdictions.
ErisX joined hands with CoinTracker to streamline the process of delivering data to tax professionals. The biggest advantage of the partnership was that users no longer needed to send these files over e-mail.
The six new companies will join Coinbase and Turbotax as CoinTracker partners. Statistics from within the organization pointed to 175,000 connected wallets and exchanges with over $20 billion in cryptocurrency transaction volume. CoinTracker’s features also allowed users to claim over $600 million in capital losses on their taxes.
Both the founder opined that Bitcoin provides the foundation for a monetary system “that has the best store of value that has ever been invented”. Chandan and Jon claimed that since Bitcoin does not need any trusted third party to verify transactions, it inherently builds confidence and transparency within the ecosystem. Officials close to the developments believe that as more people understand cryptocurrency taxation, the faith in the industry would increase.
Cryptocurrency regulations have always been shrouded in doubt since the industry’s inception. It is at least heartening to see that mainstream authorities have recognized crypto as an asset worthy of discussion. Just recently, the US Department of Treasury announced that individuals and corporate entities could defer their tax payments for three months without any penalty. This was done so that people could cope with the spread of the coronavirus.