Cryptiony, a crypto tax automation platform for individuals, traders and tax professionals, has closed a €500k pre-seed financing round and will launch in the UK.
Cryptiony was co-founded in 2021 in Łódź, Poland by Bartosz Milczarek (CEO) and Hanna Milczarek (CMO).
Milczarek and Krzysztof Dworakowski (CTO) both bring more than 10 years of experience developing IT systems for banks, forex brokers and the blockchain industry.
The company opened a London office in 2022, which Cryptiony expects to become its most important market and a launchpad for the rest of Europe.
Cryptiony automates crypto tax calculations by linking directly to exchanges via APIs and extracting relevant data, which it uses to instantly create a full tax liability report compliant with complex tax laws, such as the UK’s share pooling rules.
Even relatively small investors may need to report considerably more data than with conventional assets because of the nature of staking – a form of interest paid on crypto assets. Staking payments are often made daily, creating hundreds of data points for each asset.
It says its subscription model gives it a strong price advantage over competitors.
The round was led by New York-based ff Venture Capital with participation by Pointer.Capital and angel investor Marcin Wenus.
“If crypto ever was part of a separate universe, it isn’t now. Tax authorities are treating trading profits just like any other capital gain and taxpayers are waking up to the risks of non-compliance,” said Milczarek.
“It’s a big market already and, as Web3 becomes mainstream, is going to get even bigger. The UK is our most important opportunity right now and the new pre-seed funding enables us to grab that opening with a pricing model that is going to be hard to ignore.”