Haschchain Technology Inc., a publicly traded cryptocurrency mining company, has announced a deal to purchase a Bitcoin tax reporting software developer – Node40 LLC – for $8 million. However, the deal hasn’t been finalized yet because it’s awaiting approval by the TSX Venture Exchange.
This acquisition by Hashchain marks the company’s first move in its bid to diversify its business beyond cryptocurrency mining. The Node40 develops reporting software for cryptocurrencies, integrating directly with well-known Bitcoin exchanges. This could be a positive move towards the disclosure of transactions by miners and traders based in the US, something that the IRS has long advocated. Hashchain founder and CEO, Patrick Gray, said
Cryptocurrency mining remains an important focus for Hashchain, as we continue to acquire more Rigs and generate revenue on a large scale. The acquisition of the Node40 Business is an important next step of creating a global blockchain technology company.
Cryptocurrency accounting and reporting for tax purposes is a major concern in the industry at the moment. The recent Coinbase subpoena from the IRS highlights the significant need for the software developed by Node4,
The Software Is not Just for the IRS
Right now, the software might be implemented on the US market. However, Hashchain expects that more countries will express interest, especially those that have imposed regulations on cryptocurrencies, such as South Africa, Israel and Australia. According to the firm, the software is designed to work directly with global taxation systems, allowing individuals and organizations to adapt to specific requirements.
As part of this deal, the co-founder of Node40, Perry Woodin, becomes the new CSO (Chief Strategy Officer). According to him, the software developer means that the firm can grow their blockchain services rapidly.
We will be able to accelerate the integration of additional incentivized Blockchain applications into our hosting service. We expect to expand the Node40 Balance accounting service to support additional transparent blockchains and integrate with many more exchanges,
Do you think reporting Bitcoin transactions to tax authorities is as simple as Hashchain believes? Will more countries adopt the software and compel Bitcoin miners and traders in their respective regions to pay tax? How does this affect Bitcoin and other cryptocurrencies? Tell us what you think.