Nexo Integrates Koinly to Streamline Crypto Tax Reporting

Crypto trading platform Nexo has announced an integration with Koinly, the leading tax calculation service. Koinly has grown to become the industry’s dominant tax software solution, its popularity aided by the vast number of exchanges and wallets it supports. With Koinly integrated into Nexo, users of the crypto investment and trading platform will be able to easily calculate their tax obligations.

For crypto traders, tax calculation was once a major headache, complicated by the balkanization of the trading landscape and the inconsistent ways in which different countries treat digital assets. While these problems haven’t abated, they’ve been mitigated by bespoke software such as Koinly which handles all the calculations on the user’s behalf. This ensures that crypto investors don’t have to manually calculate profit or loss on thousands of trades.

Tax Calculation as a Service

Not only will Nexo users benefit from the integration of Koinly’s tax calculator, but they won’t have to pay for the privilege. Up to 800 transactions annually can be calculated for free, while users with a higher transaction volume will be eligible for a 30% discount on Koinly. The integration of Koinly is a testament to the evolution of Nexo, which started out in the business of crypto credit and lending before becoming a full-blown exchange.

With the recent introduction of futures trading, Nexo now offers a full range of crypto financial services. This is acknowledged by Nexo co-founder Antoni Trenchev, who said: “Our partnership with Koinly is a reflection of our dedication to providing holistic financial solutions. This integration empowers our clients to make informed financial decisions, reinforcing our commitment to fostering a compliant, secure, and user-friendly financial ecosystem.”

Having processed more than $130 billion in volume since the platform’s inception, Nexo now boasts around six million users in over 200 countries. Its web and mobile apps allow more than 60 cryptocurrencies to be traded including assets such as ETH, USDT, and BTC. Because of its existing crypto lending market, users can also borrow against the assets they deposit, allowing them to access greater capital while staying within safe borrowing limits.

Bringing Clarity to Crypto Taxation

The complexities of determining crypto tax have empirically been due to opaque or non-existent legislation as much as they have been due to the fragmented crypto landscape. It’s taken years for crypto to be taken seriously as an asset class but regulators are finally starting to catch up. The enactment of clearer taxation guidelines, including information on events such as airdrops and NFTs, has removed much of the guesswork from tax calculation.

The development of purpose-built software such as Koinly, and its compatibility with centralized and decentralized trading platforms, has also helped. Crypto investors can no longer claim ignorance or inability to file their taxes on time. It might not be the most enjoyable of tasks, but it’s one that can be wrapped up in hours rather than dragging on for days. It also provides the peace of mind that comes with knowing your financial affairs are in good order.