A Solution for Adding Crypto to Corporate Treasury

Crypto assets are a new kid on the professional-grade investment block, and the lack of a regulatory and compliance framework can turn into an insurmountable barrier on the way toward embracing crypto investments. On top of this, managing digital assets that are on the company’s balance sheet presents its own unique operational risks and challenges.

As it turns out, accounting digital asset investments is riddled with a multitude of pitfalls. For example, in many jurisdictions where the legal status of digital assets such as Bitcoin is properly defined, they are accounted as intangible assets. However, some cryptos are considered securities while others not, and that means entirely different approaches to accounting them.

Taxation of digital assets is another can of worms as there’s little to no tax guidance readily available for businesses. In fact, getting the specifics of taxing digital assets can be a rather tedious process. As another illustrative example, the U.S. tax authority (IRS) treats cryptocurrency transactions as a barter exchange, that is, exchanging one property for another. Consequently, such transactions may result in a capital gain or loss, effectively making them all taxable.

To help you overcome the roadblocks toward efficient management of digital assets on your books, we have developed a suite of policies and strategies that deal with storing, accounting, auditing, and taxing crypto asset allocations. With the upcoming KudX custodial service, we offer corporate clients and institutional investors a complete package that will allow them to diversify their portfolios by safe and compliant investing in digital assets.

We look forward to doing great things together with you, our customers.