Industry leaders support Cost Basis Interchange to solve compliance and reporting challenges – with an automated solution powered by TaxBit.
SAN FRANCISCO, Oct. 24, 2022 /PRNewswire/ -- TaxBit, the leading tax and accounting software for digital assets, announced Cost Basis Interchange (CBI), the industry's first automated solution to compliance and reporting challenges across cryptocurrency and digital assets. Founding CBI partners include Binance.US, FTX US, Gemini, Paxos, ZeroHash, BlockFi, PrimeTrust, Okcoin, Uphold, Coinme, CoinList, Ledn and other leading platforms.
In traditional equities and securities, regulations require the sharing of cost basis and acquisition information when assets are moved between brokers. However, no such requirements have existed for cryptocurrency and digital assets where transfers happen at a much higher frequency. For the first time, this industry-leading solution brings a mechanism that offers accurate transfer matching and portability of cost-basis information between brokers (and non-brokers), supporting decentralized and smart contract protocols to enable compliance at scale.
"At Binance.US, we operate with a compliance-first mindset. As the digital asset industry continues to evolve and more regulation is introduced, it is important to ensure we have the right tools and processes in place so that our customers can continue their financial journey effortlessly," said Jasmine Lee, Chief Financial Officer at Binance.US. "We look forward to partnering with TaxBit on a seamless and automated solution for the compliance and reporting challenges the industry faces."
CBI addresses cost basis and transfer statement reporting for digital asset brokers as required in the upcoming Infrastructure Investment and Jobs Act (IIJA). Under the IIJA, digital asset brokers will be required to exchange cost-basis information on a broker-to-broker level and require an entirely new transfer of cost-basis to the IRS in the broker-to-non-broker context (i.e., any off-platform wallet address).
CBI offers a new level of innovation and compliance at scale built to support the evolution of the digital assets industry. It achieves this by providing an accurate, automated solution to eliminate missing cost basis data gaps for all transfers and creating a single, accepted industry standard data model and API.
"As a market leading exchange, FTX US is committed to ensuring compliance and delivering great user experiences. We're excited to join the Cost Basis Interchange to help democratize access to accurate tax data across the industry." - Alfarida Mohammed, SVP, Compliance at FTX US
This compliant ecosystem for sharing cost-basis between brokers and IRS Transfer Statements for all non-broker transfers provides an easy way for exchanges to classify broker and non-broker wallet addresses. TaxBit has built transfer matching and cost-basis technology into its tax engine and currently provides cost-basis sharing on all transfers across the TaxBit ecosystem of products.
"Paxos is building the open financial system. We are excited to join the Cost Basis Interchange and partner with TaxBit and other platforms to create an industry standard that enables mainstream adoption of digital assets." - Zach Kwartler, Principal Product Manager at Paxos
"With the launch of CBI, digital asset brokers now have a forward-looking solution to address not only compliance needs but also one of the industry's largest user experience challenges - missing cost basis. CBI is one seamless API that makes cost basis interoperable." - Austin Woodward, Founder & CEO of TaxBit
TaxBit is the most secure option on the market through SOC 1, SOC 2, ISO 27001 & GSA-approved contract holders. TaxBit's goal is to remain a trusted, agnostic 3rd party with the most rigorous data privacy and security certifications to provide all clients peace of mind. To learn more visit - https://taxbit.com/cbi.
Designed by CPAs and tax attorneys, TaxBit is the leading tax and accounting enterprise solution for the tokenized economy. TaxBit's platform serves the industry's top exchanges, institutional investors, governments, and individuals. TaxBit has raised over $235M from the world's-top investors to enable widespread digital asset adoption by automating the regulatory hurdles of tax and accounting compliance at scale. TaxBit has HQ in Salt Lake City and Seattle.