Problem Statement
As the adoption of cryptocurrencies accelerates, tax authorities around the world are rapidly adapting regulations to keep pace. However, for individuals and professionals alike, compliance with crypto tax obligations remains an overwhelming challenge. The root of the problem lies in four key areas:
Fragmented Transaction Data Crypto users interact with multiple wallets, exchanges, and DeFi platforms. These transactions are scattered, often unstandardized, and difficult to consolidate. Manual tracking is error-prone and unsustainable, especially for active users.
Lack of Consistent Classification Not all crypto activity is treated the same. Whether it's a trade, a staking reward, an NFT sale, or a liquidity provision — each action can have different tax implications. Yet, most users lack the tools or knowledge to correctly classify their transactions.
Complex and Varying Local Tax Laws Every country has its own set of rules for crypto taxation — and they are constantly evolving. What qualifies as taxable income in Germany may be exempt in Switzerland. Current tools offer generic solutions that do not account for these crucial local differences.
Limited Access to Crypto-Savvy Tax Advisors Even when users seek professional help, many tax advisors lack the technical infrastructure to interpret blockchain data accurately. There is no seamless way for advisors to access or audit a client’s crypto history in a secure and structured format.
The result is a landscape in which users face high compliance risks, wasted time, and often overpaid or underreported taxes. This situation creates friction for mainstream adoption and undermines trust in the crypto ecosystem.
TaxChain directly addresses these pain points with an automated, secure, and locally intelligent solution that bridges the gap between Web3 activity and real-world tax obligations.
Last updated