Founded in 2018, Koinly is a cryptocurrency tax software platform and crypto portfolio tracker used by hundreds of thousands of crypto investors and accountants globally. In addition, it is the preferred tax partner for a number of leading crypto exchanges and accountancy firms.
Koinly is a start-up based in London and Sydney with a solid product market fit. The company builds tools to enable the widespread adoption of cryptocurrency by automating the regulatory hurdles of tax compliance and asset tracking.
The main focus for Koinly currently is the Australian market, as the company is in the middle of its tax season. Its Australian office in Sydney is the first physical company office outside the EU and US. Since February 2022, Koinly has grown from one to 33 employees, with another dozen to be added before the end of the year.
The global team is closing in on 110 employees spread across the globe, with offices in Australia, the UK, Canada and India. Koinly also supports remote employees around the world. The company's focus has always been to emphasise customer success, with over half the team centred on customer service. The rest of the team is placed across product, tax education, marketing, business development, tax regulation, sales, social media, and content.
Koinly's crypto tax software helps investors calculate their crypto taxes, generating tax-office compliant reports for over 100 countries. Of course, Crypto investors need to do their taxes, but it shouldn't be a complicated process.
The unique selling point for Koinly is that it makes calculating the taxes on digital assets easy, no matter how many wallets, blockchains or exchanges an investor has used or the country they're in. Koinly has an industry-leading product, with over 700 integrations available for the most popular crypto exchanges, blockchains and wallets.
It also offers a free plan that allows crypto investors to import and track up to 10,000 transactions. This is perfect for customers looking to track their crypto portfolio and manage holdings across dozens of different platforms.
"Koinly is focused on developing the strongest integrations to connect with exchanges, wallets and blockchains for the most accurate data reporting," Koinly tax head Danny Talwar says.
"We also highly value having a dedicated customer service team to address any queries, feedback, or support our customers may have."
Doing taxes is confusing, let alone adding cryptocurrencies into the mix. From a customer perspective, the most significant challenge after investing in cryptocurrencies is figuring out what tax is owed. From DeFi to NFTs and staking to earn crypto yield, there are complex calculations that tax authorities around the globe are still trying to wrap their heads around.
Crypto has historically been seen as a speculative investment, but an early 2022 Roy Morgan survey found that over one million Australians own at least one type of cryptocurrency, with an average investment value of more than AUD $20,000. As a result, accountants increasingly feel they need to offer crypto-related tax solutions.
Koinly launched its Accountant Platform in 2021, which has seen incredible uptake during the Australian tax season. The Accountant Platform is designed to do the heavy lifting for accountants and tax practitioners, helping them assist clients with personalised tax reports compliant with their local tax office.
Beyond the practicalities of helping customers with their crypto tax, Koinly's customers have varying degrees of financial literacy and crypto knowledge. The company views assisting every user in whatever stage they might be at as crucial. To accomplish this, Koinly maintains hundreds of helpful guides and blogs on everything from the latest tax guidance through to how to connect wallets to the platform. It also has YouTube videos with step-by-step tutorials on how to get the most out of Koinly.
In response to increasing customer demand, Koinly launched its NFT integrations in early 2022. This helped those who had bought, sold and swapped NFTs during the recent bull market to import all their NFT trades from their wallets, easily identifying NFTs from the top projects and blockchains.
With NFTs now increasingly popular, particularly in the GameFi space, it's a vital area for Koinly to continue to support and help provide its users with accurate tracking - particularly as various taxable events can occur with NFT trading.
Crypto as an investable sector is continuing to grow, with accountants and tax practitioners now leveraging Koinly to provide crypto tax solutions for their clients. Koinly has a solid product-market fit, with the ability to help crypto investors where and when they need it.
COVID-19 saw the most significant period for crypto adoption globally, with many having their first exposure to digital assets between 2020-2022. For Koinly, this worked as a booster to its total addressable market, as well as for its employees, as the company hired an entirely remote-first workforce over this time, spread across most timezones.
With more teams coming to the office, Koinly's Australian office in Sydney has paved the way for more global headquarters to open in late 2022.
"Koinly is experiencing a period of rapid growth, with around 15 times the users it had last year, and we're set to grow to over one million users by the end of this year," Talwar adds.
"It's been extremely rewarding to have such a great reception from our Australian customer base after launching here. Koinly's local presence is important as we're here to stay.
"We want our users to have access to not only our industry-leading software but dedicated local teams and customer support on hand to assist them with any questions they may have."
Check out Koinly here.