Blockchain Founders Group invests in Catax to simplify the crypto taxation and auditing process
We are excited to announce that Catax has become our most recent addition to our investment track record. Catax makes it easy for individuals, traders, investors, accountants, fund managers, corporations, and auditors to manage, audit, and put together crypto tax reports from various exchanges and wallets.
Why we invested in Catax
The adoption of cryptocurrency is growing rapidly around the world. The total number of global crypto users is expected to surge to 293 million, a significant increase from 257 million users in 2022. India, in particular, is anticipated to witness a substantial surge in crypto users, reaching 156 million users by the end of 2023, five times higher than that of the United States, according to this article. This remarkable growth can be attributed to various factors, including India’s sizable and tech-savvy young population, which is embracing novel financial technologies. Moreover, the recent government decision to tax crypto transactions has also drawn interest toward the legitimate and accessible crypto industry. Furthermore, the popularity of decentralized finance (DeFi) applications, providing innovative avenues for cryptocurrency use, contributes to this positive development, highlighting the increasing recognition of cryptocurrency’s value as a store of wealth, a method of payment, and an investment asset.
Despite the growing adoption of cryptocurrency, the taxation of crypto remains a complex and challenging matter. Specifically, in India, the new taxation regulation that is rolled out by the government has proven to be the core issue for many investors. This issue is of utmost importance, given that non-compliance may lead to severe penalties, as reported by Coindesk. Moreover, the complexity arises from cryptocurrencies being a relatively new asset class, leaving both individual and corporate investors unsure about how to adhere to regulations. Additionally, managing multiple crypto accounts across different exchanges and wallets further complicates the matter at hand. Efforts to address and clarify the taxation of cryptocurrencies are crucial to promote responsible usage and investment in this evolving financial landscape.
How does Catax do it?
Catax is the pioneering blockchain and crypto-native innovation platform in India that aims to simplify and streamline cryptocurrency taxation for small businesses, private companies, and investment funds. Catax offers an automated, user-friendly solution to manage the intricacies of crypto taxes efficiently by enabling easy trade tracking, cross-exchange transfer identification, and comprehensive tax reporting.
Catax consolidated all crypto asset transactions in one place, making it easy to track and manage. Further, Catax provides reliable tax reports, allowing users to identify and resolve any transaction issues effortlessly. Starting with Catax is a breeze, users only need 60 seconds to create a free account and then connect their account with over 30+ service providers, including exchanges, wallets, and blockchains, and start computing their taxes with filing-ready reports for auditing and filing.
Here is how Catax does it:
- Catax offers a simple and free tax calculator for individuals to compute taxes on restricted transactions. Users can enter transaction details or wallet addresses to receive tax insights for general guidance.
- For individual customers, a cloud solution is designed to provide tools to audit and calculate capital gains and/or losses and associated taxes for multiple cryptocurrencies. It offers both a free basic service and paid professional tools for advanced needs.
- For accounting and tax professionals, Catax offers solutions to enable the auditing of cryptocurrency accounts, transactions, and wallets. Catax helps professionals expand their expertise in the growing cryptocurrency, NFT, DeFi, and blockchain economies.
- Additionally, Catax also provides enterprise solutions, tailored to corporate accounting needs, offering automated transaction ingestion and tax processing for all transactions across various sources. Supports country-specific accounting standards, providing a centralized platform for automated accounting and tax records.
Take a look at how Catax simplifies the process of crypto tax and auditing process:
The Catax team consists of experts in blockchain auditing and taxation, with deep experience in forensics, blockchain technology, and collaborating with government taxation departments. Gaurav Mehta, co-founder and CEO, is a serial entrepreneur with over 10 years of experience in the crypto space and 5+ years in government contracts, specializing in forensics, taxation, innovation, technology, and venture building. Shauryaditya Singh, co-founder and COO, brings more than 5 years of experience as a computer science engineer in blockchain technologies and the crypto space. Together, Catax made its mission to simplify cryptocurrency management and reporting. Learn more about Catax on their Website and LinkedIn
About Blockchain Founders Group
Blockchain Founders Group (BFG) is a company builder and early-stage venture capital investor. Our team comprises academic and regulatory drivers of the blockchain economy, serial entrepreneurs, and venture capitalists. We love to work with outstanding entrepreneurial talents and bring to bear the full support of our network to make them succeed. Follow us on LinkedIn, Medium, Twitter, and YouTube.
About BFG Superstars Program
The BFG Superstars Program is a crypto incubation program for pre-seed ideas and a place for blockchain talents and co-founders to meet and launch crypto startups in 2 to 3 months. Each year we invest in 15–18 startups with different blockchain-based solutions. At the end of the program, selected startups will receive pre-seed funding up to €70,000. Find more information about the program here.