Sovos, a tax software company and Unbound Tech, a provider in cryptographic key management and protection, today announced a partnership to enable institutions trading or holding digital assets and cryptocurrency an advanced platform to secure their digital asset transactions that also ensures compliant tax reporting of cryptocurrency trades.
As investments in cryptocurrencies increase, crypto platforms adhering to institutional-grade cryptocurrency trading standards must adapt to new compliance requirements as digital assets move mainstream.
“With the increased use of cryptocurrencies, crypto tax reporting continues to take shape. Sovos provides a platform that can seamlessly adapt to changes in reporting requirements, guaranteeing compliance for our digital asset clients while they focus on growth and adoption,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos.
The Sovos-Unbound Tech partnership will provide advanced tools to secure blockchain transactions while ensuring tax compliance and reducing risk. Together, the integrated solution provides a superior way for crypto-asset exchanges to efficiently report taxes and process forms while ensuring transaction security.
“Sovos offers the expertise and track record of more than three decades of tax reporting with many of the world’s largest financial institutions, and demonstrates a deep understanding of the cryptocurrency space and the unique challenges it presents,” said Rocco Donnino, vice president of strategic alliances at Unbound Tech. “Unbound Tech and Sovos together give customers peace of mind knowing their crypto assets are not only safe from a security standpoint, but also from a government audit standpoint, as well.”
Banker agreed. “Partnering with Unbound Tech to bring this solution to market was a natural fit,” he said. “They bring recognized digital asset security while Sovos delivers the best of intelligent tax information reporting to the cryptocurrency arena.”