Don’t see an answer to your question below? Please feel free to contact us directly.
There are lots of names for cryptocurrencies: virtual currency, digital currency, crypto assets, crypto, etc, but they all generally mean the same thing. A cryptocurrency is a digital asset that exists as part of or as an application layer to blockchains. For example, Bitcoin is the native cryptocurrency of the Bitcoin blockchain.
A cryptocurrency exchange is an online platform that allows users to trade cryptocurrencies. Each exchange has different offerings, KYC procedures, and pricing.
A blockchain is a relatively new technology which can most simply be described as a digital ledger of transactions. There are many different types of blockchains like Bitcoin, Ethereum, Rchain, etc. Although each blockchain is different, there are some generalizable properties of public blockchains which include varying degrees of decentralization, immutability, and anonymity. Cryptocurrencies exist as parts of, or applications on, blockchains.
The only guidance given on how “virtual currencies” should be treated came from the IRS in 2014. Notice 2014-21 indicates that all virtual currency transactions should be treated like property. This means that companies must be tracking their gains and losses with enough precision to be able to fill out a Schedule D form. VeriLedger organizes our client information to be able to easily fill out this form.
Given that there many different types of cryptocurrencies that can all be used in a variety of different ways, it seems a little silly that the United States only has one tax treatment for them. In April, the AICPA (American Institute of Certified Public Accountants) wrote a letter to the IRS suggesting some more nuanced ways to classify cryptocurrencies. We at VeriLedger are actively involved in advocating to educate people and businesses about proper treatment of cryptocurrencies.
CryptoKeeping is our word for bookkeeping. We have a team of CryptoKeepers that are trained specially to manage cryptocurrency transactions. This team can take care of bookkeeping your whole portfolio (not only cryptocurrencies).
No. Nothing in our service offerings should be construed as tax advice. We simply help you organize your business’s financial data so that it is ready for a tax preparer.
Our update times are a function of how frequently the information sources we are connected to are updated. If the source was connected via API or Ethereum address, our site will be 5 minutes from real-time.
Not yet, but we a expanding our service offerings quickly. If you are located outside of the United States and would like to see VeriLedger support your own country’s tax rules, please let us know your location here .
We currently offer our services to businesses only. Tax treatment for businesses is different than individual tax calculations, so please do not use our system for your personal tax estimations.
Currencies & Exchanges
Currently we can provide automated data connections using APIs to the following exchanges:
Privacy & Security
Never! We only connect to your various account information with “Read-Only” access.
No! We only use read-only access to look at your accounts. You should never hand over your passwords to anyone.