Glassnode, a cryptocurrency intelligence firm, has announced its decision to halt its crypto tax-related projects in order to focus on developing new solutions for institutional investors and decentralized finance (DeFi). To facilitate this shift, Glassnode has sold its crypto-focused tax platform, Accointing, to Blockpit, a European crypto compliance provider, in a multimillion-dollar deal whose exact size has not been disclosed.
With the sale of Accointing, Glassnode will exit the crypto tax space and allocate its resources towards delivering new Digital Asset Intelligence Solutions for institutional clients. The company has spent the past few months restructuring its infrastructure to accommodate its expansion into DeFi data solutions and other areas of the digital asset ecosystem. By building on its success as a leading on-chain data platform for Bitcoin and Ethereum, Glassnode aims to equip institutions with DeFi data and tools that facilitate smooth trading and navigation within the DeFi space.
The acquisition of Accointing marks another strategic move by Blockpit to consolidate its position in the cryptocurrency tax compliance market. Blockpit had previously merged with the German rival platform Cryptotax in 2020 and now aims to create a unified crypto tax platform for Europe. Florian Wimmer, co-founder and CEO of Blockpit, emphasized the seamless migration process for Accointing users to the new Blockpit platform, promising that the transition will only take a few minutes. Wimmer stated that this consolidation will enable Blockpit to focus its joint resources on developing an enhanced platform, delivering more features, and providing a better customer experience. Additionally, shutting down the Accointing infrastructure will lead to increased cash flow for Blockpit, effectively doubling its revenue without incurring additional costs.
The timing of the deal is deemed particularly opportune, with upcoming regulations like the Crypto-Asset Reporting Framework (CARF) and the Directive on Administrative Cooperation (DAC8) set to come into effect. Starting from 2026, all crypto asset service providers, including custodians, exchanges, and brokerages, will be required to report user Know Your Customer (KYC) data and transaction information to tax authorities. Wimmer believes that these impending regulations will significantly enhance the enforcement and prosecution of tax fraudsters. DAC8, which was formally adopted in October 2023, grants tax collectors jurisdiction to monitor and evaluate cryptocurrency transactions conducted by individuals or entities within any member state of the European Union.
Glassnode’s decision to divest its crypto tax-focused project reflects the growing importance of institutional investors and the expanding DeFi sector within the cryptocurrency industry. By prioritizing the development of solutions targeting these areas, Glassnode aims to meet the evolving needs of its clients and stay ahead in the ever-changing crypto landscape.