In the fast-moving world of cryptocurrencies, managing tax obligations can quickly become a complex task. This is where the partnership between Blockpit and LCX AG comes into play—bringing together two strong players in the crypto-ecosystem to help users simplify their tax reporting and gain access to special benefits.
Understanding the Players
Blockpit
Blockpit is a crypto-tax solution that offers tools for transaction tracking, portfolio monitoring and tax-report generation. It supports a wide range of exchanges, blockchains, wallets and assets, enabling users to compile compliant tax filings with less manual effort. It offers features such as automated import of trading data, gain/loss calculations, and country-specific tax rules.
LCX AG
LCX is a regulated digital-asset platform based in Liechtenstein, offering a range of crypto-services including an exchange, tokenization infrastructure and asset-services under a compliant regulatory framework. Its ambition is to bridge traditional finance and the blockchain ecosystem.
Why the Partnership Matters
When you trade, invest or manage crypto assets via LCX, you’re engaging in transactions that may trigger tax obligations in your jurisdiction. The partnership between Blockpit and LCX means:
- LCX users can directly integrate their transaction data into Blockpit. The system supports seamless data import via API or other means, reducing manual data entry.
- The integration helps in correctly classifying transactions (fiat, crypto trades, transfers, derivatives, tokenized assets) in alignment with tax-laws. For example, Blockpit supports country-specific tax regulations and multiple asset types including tokenized stocks and NFTs.
- Users benefit from time savings, accuracy and compliance assurance. By using a specialized tool like Blockpit, LCX customers can focus more on their investments rather than spreadsheets and tax headaches.
In short: trading crypto is one thing, correctly accounting for it from a taxation perspective is another. This partnership addresses the latter.
Key Features for LCX Users
Here is a breakdown of what an LCX user gains by leveraging Blockpit:
- Automated data import – Simply connect your LCX account or input a data export, then let Blockpit handle transaction ingestion.
- Comprehensive asset support – Whether you traded tokens, used “Earn” products on LCX, or participated in tokenization offerings, Blockpit’s integration supports a broad set of asset types.
- Country‐specific tax rules – Depending on your jurisdiction, crypto tax rules differ (holding period, tax rate, deductibility of losses). Blockpit is equipped to handle many regions.
- Pre-filled tax reports – Once the data is processed, you can generate a professional tax report ready for submission. The report covers your holdings, realized gains and losses, fees, timestamps, etc.
- Special benefits for LCX users – As part of the partnership, LCX users have received exclusive perks (e.g., 25% discount on the first Blockpit licence, entry into a US $3,000 LCX token raffle).
Special Benefits: What LCX Users Should Know
One of the key draws of this collaboration is the additional incentive offered to LCX users. According to announcements:
- LCX users who register for Blockpit via the LCX offer can receive a 25 % discount on their first Blockpit licence.
- In one promotional period, LCX users could enter a $3,000 LCX token raffle when registering via Blockpit.
- In Germany, there was a specific code (“LCXGERMAN25”) providing a 25 % discount for LCX-verified users.
These special benefits help to lower the barrier to entry for those who might otherwise avoid using paid crypto-tax software. For active crypto traders and investors on LCX, accessing such benefits can translate into both savings and reduced risk.
How to Get Started
If you’re an LCX user (or considering becoming one) and you want to leverage this partnership, here’s a step-by-step outline:
- Open an account on LCX (or ensure your existing account is active and verified).
- Sign up for Blockpit via the dedicated LCX integration link to access the special offer (discount, raffle etc).
- Connect your LCX account to Blockpit by choosing “+ Integration” in Blockpit, selecting LCX and following instructions.
- Import transaction data – Blockpit will fetch your trades, transfers, token interactions from LCX.
- Review & categorize transactions – Use Blockpit’s dashboard to ensure your transactions are correctly classified (trades, transfers, staking/earn, tokenization) and check for unlabeled items.
- Generate tax report – Once everything’s in place, produce a PDF report tailored for your country’s tax filing needs.
- Submit with your tax return – Use the report alongside your normal tax paperwork.
- Claim the special benefits – Ensure you’ve applied the discount code or entered the raffle if applicable.
Why This Is Important (Especially for Crypto Investors)
- Increasing regulatory scrutiny: Governments are stepping up crypto tax enforcement. For example, LCX specifically warns that tax authorities already track LCX transactions via blockchain analysis and are preparing for requirements like the EU’s DAC8 directive.
- Complexity of crypto tax-events: Mining, staking, token swaps, airdrops, DeFi interactions, derivatives and transfers between wallets can each trigger tax implications. A tool like Blockpit reduces the chance of mis-reporting.
- Peace of mind and audit readiness: Having a detailed, professionally generated report means you’re better prepared if your tax authority asks questions.
- Capitalising on benefits: Beyond simple compliance, the partnership gives LCX users a financial incentive to adopt proper tax-tools early, which pays off in terms of discount and improved process.
Potential Limitations and Considerations
While the Blockpit × LCX partnership is strong, users should keep certain points in mind:
- Jurisdiction-specific rules: Crypto tax rules differ widely country to country (e.g., holding period vs short-term gains, tax-deferrals, exemptions). While Blockpit supports many regions, you’ll still want to consult a tax advisor.
- Manual checks still advised: Although transaction import and classification are automated, unusual transactions (e.g., cross-wallet transfers, off-exchange trades) might need manual review.
- Cost-benefit for smaller users: If you have a very small number of transactions, it might still require evaluation whether you need a paid licence or if simple spreadsheets suffice.
- Promotional period expiry: The special benefits (discounts, raffle entries) are often time-limited; confirm current availability.
- Data security and integration risks: While Blockpit and LCX are reputable, always ensure you understand data-sharing, API permissions and your privacy settings.
Final Thoughts
The collaboration between Blockpit and LCX brings a meaningful integration of tax-compliance tools into the crypto-trading landscape. For any LCX user who is dealing with multiple asset types, regular trading or more complex interactions (staking, tokenization, derivatives), leveraging this partnership can lead to:
- smoother, faster tax filing
- greater accuracy and compliance
- access to financial incentives (discounts, raffles)
In today’s environment of growing regulatory focus on cryptocurrencies, tools like Blockpit aren’t just optional—they’re increasingly necessary if you want to stay on the right side of tax authorities while maintaining focus on your investment objectives.
If you’re using LCX (or considering it), I’d strongly recommend taking advantage of this integration: sign up for Blockpit, apply the LCX-specific benefits, connect your account, and make tax-reporting a less painful and error-prone process.