Divly, a FinTech helping simplify tax declarations for the crypto market, has raised $400,000 in a new fundraise.
The investment was joined by DHS Venture Partners, Greens Ventures and YEoS Ventures. Following the close of the round, the company plans to bolster its growth and expand its reach to more investors globally.
While the market is in the middle of the Crypto Winter, Divly claims it has still managed to grow. It attributes this partly because it expanded its services to all Nordic countries, the Netherlands, Japan and Germany.
It claims that less than 1% of cryptocurrency investors may have declared their cryptocurrency to tax authorities in 2022.
Founded in 2021, Divly aims to make crypto taxes easy. Its services offer localised tax support and includes the Professional Tax Suite, which allows users to easily track and manage accounts simultaneously.
Divly founder Carl Gärdsell said, “We see a big problem in declaring crypto and are convinced our product will make it easier. Determining what you must declare for each transaction can be overwhelming and time-consuming. If you are not an accountant, tax lawyer, or programmer and have many transactions, you have little chance of doing this manually yourself.”
The company stated the introduction of MiCA and the DAC8 proposal will increase the regulations around cryptocurrency. This will result in regulators becoming more aware of the cryptocurrency market. One of the new main requirements will require crypto exchanges with users in the EU to share their client information with tax authorities by January 2026.
Gärdsell added, “Procedures and processes for authorities to deal with tax issues will become increasingly important. Transactions on the blockchain are not anonymous; they are pseudonymous.
“This means that we could soon see a situation where those who have not paid taxes need to start backtracking and accounting for their transactions. I think most people want to do the right thing but don’t know how to do it. It should be easy to do the right thing, which we make possible.”
Last year, the company partnered with Coinmotion, a Finnish virtual currency service provider and Safello, Swedish crypto broker. It also has collaborations with several international players, including BYDFi and Coingecko.
In other crypto news, Relai, a place to buy and sell bitcoin, raised $4.5m in a funding round that will help the crypto company bolster its position in Europe.
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