Problem

Alpha Company, an innovative firm that took part in several Initial Coin Offerings (ICOs), had accumulated a significant volume of digital assets. Over time, due to the nature and scale of its transactions, the tax authorities reclassified its activity as professional trading, making accounting much more complex.

Challenges

• Massive transaction volume: Millions of entries generated by high-frequency trading.
• Operational complexity: Participation in ICOs, staking, inter-wallet transfers.
• Insufficient traceability: Difficulty tracking the origin and destination of funds.
• Tax risks: Exposure to heavy taxation due to miscalculated capital gains.

“Crypto accounting is complex and requires dedicated tools and expertise to avoid significant tax penalties.”

Solution

Crypto Accounting assisted Alpha Company in bringing its crypto accounting into compliance. Key actions included:

• Historical reconstruction of transactions: Exhaustive collection of all transactions since inception.
• In-depth analysis: Identification of operation types (ICOs, staking, inter-wallet transfers) and neutralisation of unnecessary gains or losses.
• FEC generation: Production of a compliant journal entry file.

Thanks to this approach, Alpha Company fulfilled its tax obligations while optimising its financial position.