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.
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“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.