Introduction:
In the ever evolving landscape of Web3 finance, staying ahead of the curve is essential. At Kryptos, we have always been committed to democratising finance for all users. As we prepare for a significant upgrade, we are excited to share with you our plans for a subtle yet powerful transition that promises to enhance our platform's capabilities and user experience.
The Journey So Far:
Since its inception, Kryptos has been at the forefront of innovation in the Web3 finance sector. Our platform has empowered users with tools for seamless financial analytics, compliance ready tax reporting, and personalised portfolio management. By supporting over 5000 platforms, including major centralised exchanges, decentralised finance protocols, and blockchain networks, we have established ourselves as a key player in enhancing interoperability, compliance, and accessibility in the decentralised finance space.
The Need for Change:
The world of Web3 finance is dynamic, with new developments and challenges emerging rapidly. To continue delivering value and staying relevant, we recognize the need for a transition. This change is driven by our desire to provide even better services, ensure regulatory compliance, and enhance user accessibility. By evolving, we aim to offer a more robust and user friendly platform that meets the growing demands of our diverse user base.
The Transition Process:
Our transition is being carefully planned and executed to ensure minimal disruption to our users. We're making incremental improvements and enhancements, all while maintaining the core functionalities that our users rely on. This subtle approach ensures that users can seamlessly adapt to the new features without experiencing any significant changes in their usual workflows.
What's Coming:
With this transition, we will be introducing several exciting features and enhancements:
- Enhanced Interoperability: Improved integration capabilities with a broader range of platforms, ensuring seamless data sharing across different blockchain ecosystems.
- Advanced Compliance Tools: New tools to help users stay compliant with evolving regulations, making tax reporting and regulatory adherence easier than ever.
- Improved User Accessibility: A more intuitive user interface and experience, designed to cater to both new and existing users.
- RealTime Financial Analytics: Tools that offer real time insights into financial data, helping users make informed decisions swiftly and accurately.
- Build to Earn Model: Incentives for developers to build and contribute to the Kryptos ecosystem, promoting innovation and growth within the platform.
These enhancements are designed to empower our users with the tools they need to navigate the complexities of Web3 finance confidently.
Conclusion:
At Kryptos, our commitment to democratising Web3 finance remains unwavering. This subtle yet powerful transition is a testament to our dedication to providing the best possible services to our users. We invite you to stay tuned and be ready to explore the new version of Kryptos as we roll out these exciting updates.
Call to Action:
Stay tuned for our weekly blog updates, where we will dive deeper into the new features and use cases that Kryptos will offer. Follow us now on our socials to keep up with the latest developments and learn how you can make the most of the new Kryptos platform.
| Step | Form | Purpose | Action |
|---|---|---|---|
| 1 | 1099-DA | Reports digital asset sales or exchanges | Use to fill out Form 8949. |
| 2 | Form 1099-MISC | Reports miscellaneous crypto income | Use to fill out Schedule 1 or C. |
| 3 | Form 8949 | Details individual transactions | List each transaction here. |
| 4 | Schedule D | Summarizes capital gains/losses | Transfer totals from Form 8949. |
| 5 | Schedule 1 | Reports miscellaneous income | Include miscellaneous income (if not self-employment). |
| 6 | Schedule C | Reports self-employment income | Include self-employment income and expenses. |
| 7 | Form W-2 | Reports wages (if paid in Bitcoin) | Include wages in total income. |
| 8 | Form 1040 | Primary tax return | Summarize all income, deductions, and tax owed. |
| Date | Event/Requirement |
|---|---|
| January 1, 2025 | Brokers begin tracking and reporting digital asset transactions. |
| February 2026 | Brokers issue Form 1099-DA for the 2025 tax year to taxpayers. |
| April 15, 2026 | Deadline for taxpayers to file their 2025 tax returns with IRS data. |
| Timeline Event | Description |
|---|---|
| Before January 1, 2025 | Taxpayers must identify wallets and accounts containing digital assets and document unused basis. |
| January 1, 2025 | Snapshot date for confirming remaining digital assets in wallets and accounts. |
| March 2025 | Brokers begin issuing Form 1099-DA, reflecting a wallet-specific basis. |
| Before Filing 2025 Tax Returns | Taxpayers must finalize their Safe Harbor Allocation to ensure compliance and avoid penalties. |
| Feature | Use Case Scenario | Technical Details |
|---|---|---|
| Automated Monitoring of Transactions | Alice uses staking on Ethereum 2.0 and yield farming on Uniswap. Kryptos automates tracking of her staking rewards and LP tokens across platforms. | Integrates with Ethereum and Uniswap APIs for real-time tracking and monitoring of transactions. |
| Comprehensive Data Collection | Bob switches between liquidity pools and staking protocols. Kryptos aggregates all transactions, including historical data. | Pulls and consolidates data from multiple sources and supports historical data imports. |
| Advanced Tax Categorization | Carol earns from staking Polkadot and yield farming on Aave. Kryptos categorizes her rewards as ordinary income and investment income. | Uses jurisdiction-specific rules to categorize rewards and guarantee compliance with local tax regulations. |
| Dynamic FMV Calculation | Dave redeems LP tokens for Ethereum and stablecoins. Kryptos calculates the fair market value (FMV) at redemption and during sales. | Updates FMV based on market data and accurately calculates capital gains for transactions. |
| Handling Complex DeFi Transactions | Eve engages in multi-step DeFi transactions. Kryptos tracks value changes and tax implications throughout these processes. | Manages multi-step transactions, including swaps and staking, for comprehensive tax reporting. |
| Real-Time Alerts and Updates | Frank receives alerts on contemporary tax regulations affecting DeFi. Kryptos keeps him updated on relevant changes in tax laws. | Observe regulatory updates and provide real-time alerts about changes in tax regulations. |
| Seamless Tax Reporting Integration | Grace files taxes using TurboTax. Kryptos integrates with TurboTax to import staking and yield farming data easily. | Direct integration with tax software like TurboTax for smooth data import and multi-jurisdictional reporting. |
