Maintaining cryptocurrency tax compliance can be difficult, especially since many laws are new (or yet to be drafted).that’s why binoculars was established. Users integrate exchanges and wallets, and Binocs provides tax reports and other accounting details. The startup announced today that he has raised $4 million to expand in markets such as the US, UK and Australia. The round was led by BEENEXT and Arkam, with participation from Accel, Saison Capital, Premji Invest, Blume and Better Capital.
Founded in May 2022 by Tonmoy Shingal and Pankaj Garg and based in Bangalore, Binocs currently has over 1,000 users, including retail and institutional investors who need to perform forensic accounting and risk management. There is Binocs is currently tax compliant in the US, UK, Australia, South Africa, and India, and plans to add more markets in the coming months. A portion of the funds will be used for product development and his Binocs go-to-market team for individuals and institutions.
Binocs can provide tax reports within 30 minutes. It also tracks investment returns, profits and losses, capital exchanges, derivatives taxes, CeFi and DeFi lending and borrowing. The app can provide users with details of fees already paid and taxes withheld on transactions, so users understand what taxes they need to pay.
Singhal told TechCrunch that Binocs will be the bridge that connects transactions on the blockchain to “a world of compliance equivalent to web2,” especially as the number of coins, exchanges, types of transactions and DeFi protocols grows. said he intended to
currently about 300 million crypto usersand it is expected to reach about 1 billion by the end of this year.
The Binocs founder points to Coin Market Cap figures that say the total market capitalization of the cryptocurrency industry has grown from about $325 billion in September 2020 to $1 trillion in September 2022. Mixed tax of about 20%the total tax liability is about $70 billion and could rise to $300 billion by 2026.
Startup CEO Singhal said cryptocurrency hedges and investment funds are often run by a small staff and need to pull and consolidate data from multiple sources and comply with it, which is why tax He said the process of calculating and performing compliance is time-consuming. Different compliance and reporting rules for each type of transaction.
“The traditional approach is to manually collate and interpret blockchain transaction ledgers. Doing this requires a significant amount of time, a high degree of cryptocurrency knowledge and local regulations,” Singhal said. rice field. “This work can be time-consuming, error-prone, and costly.”
He said regulation is one of the biggest obstacles to promoting crypto adoption, with about 15 to 20 countries currently taxing investments in cryptocurrencies, and 60 in the future. It added that it would be 70 countries from
Binocs also plans to build more apps on top of its algorithms as it gets more data. “We see ourselves as a data company that understands what is happening in crypto trading and builds applications for multiple use cases in the future.
Binocs is currently non-revenue and will monetize by operating under a freemium model and an enterprise plan for business investors.