This week the cryptocurrency and blockchain accounting firm, Libra, has launched a new compliance application for market makers and exchanges. Additionally, the company raised $7.8Mn in a Series A funding round to promote expansion.
As the cryptocurrency economy’s market capitalization surpasses $320Bn, lots of digital asset proponents are trying to figure out ways to write off capital gains and stay tax compliant.
Libra Reveals New Tax Software for Market Makers and Cryptocurrency Exchanges
The cryptocurrency-centric tax compliance and accounting agency, Libra, has launched an auditing application dedicated to enterprise companies and exchanges who deal with a lot of digital assets. Libra says the program called ‘Crypto Office’ performs “middle office processes and reporting, while improving operational and financial analysis and control.” Libra started its operations back in 2014 by providing tax applications for average bitcoin enthusiasts and crypto-focused day traders.
The company has established blockchain connectivity to multiple public networks, exchanges, and wallet software. This gives individuals and organizations the ability to process real-time accounting, reports, tax calculations, and regulatory compliance.
“Further, we found without the right systems and processes, institutional investors were unwilling to allocate significant investment into the industry”, explains Libra’s CEO Jake Benson.
With the introduction of Libra Crypto Office, we hope to continue industry efforts to upgrade information accuracy, transparency, and compliance practices.
Libra’s software calculates gains, losses and accounting information for tax purposes.
Libra Raises $7.8 Million This Week
According to Libra, the company is already working with two firms that focus on large transactions and vast amounts of cryptocurrency trades which include Shapeshift, and XBTO. Libra also raised $7.8Mn on November 27, adding to their previously raised $2Mn Seed round from firms like Fenbushi Capital. Investors who participated in Libra’s funding round this week include Liberty City Ventures, Boost VC, and early Facebook investor Lee Linden. Libra’s founder Jake Benson explains that the funding will be used to scale Libra’s tax applications and data services.
“We provide our customers three core components of value. First, a single on-ramp that connects to the many data sources within the ecosystem”, says Benson.
Second, the real-time data processing engines and services required to continuously and automatically standardize and deliver accurate financial information. And third, blockchain-native software that’s purpose-built for this industry.
Libra also has various competitors within the cryptocurrency industry offering tax compliant and crypto-auditing software. This includes firms like Node40, Cointracking, Bitcoin Transaction Coordinator, and the startup, Bitcoin Taxes.