Descrypt: Revolutionizing Crypto Compliance and Taxation with Innovative Solutions
CXOToday has engaged in an exclusive interview with Mr. Raghuram Trikutam, CEO, Descrypt
- What was the driving motivation for establishing Descrypt, and what overarching vision does the company hold?
Descrypt was borne from the vision of driving compliance and regulation in crypto markets, and thereby in making crypto as an acceptable alternate asset class. The vision for Descrypt is to provide tools for every crypto investor to stay compliant in their respective jurisdictions. We believe crypto could be a genuine alternate asset class should the investors in it behave rationally and under regulations. Our efforts are to establish this process.
2. Could you elaborate on the hurdles that cryptocurrency investors encounter when it comes to effectively handling their tax responsibilities, and in what ways does Descrypt provide solutions to address these issues?
Most investors tend to choose 2-3 different exchanges/wallets in order to invest in crypto. They also do move tokens among these entities. This makes it quite tricky to calculate taxes as in India, taxes are applicable at a transactional level and at an overall capital gains level. To top it, investors are also unaware of the cost basis of their purchases as they don’t maintain records for the same. Exchanges don’t tend to provide most information in a reliable manner thereby making the entire process of calculating taxes to be fairly cumbersome. For taxpayers who want to be compliant and law abiding, this comes across to be a nightmarish process to go through.
3. What are some of the distinctive and innovative attributes embedded within Descrypt’s tax management tool that set it apart from conventional solutions?
Descrypt stands out from its competition in two primary aspects : accuracy and affordability. Rather than use any third party libraries, Descrypt began grounds up by integrating directly with exchange APIs. The advantage with such an approach is that Descrypt can fetch all transactions that a user would have performed at an exchange level in the most accurate and seamless fashion possible. To top it, Descrypt has kept its pricing tiers lower compared to its competition to ensure that compliance shouldn’t come at the risk of affordability.
4. Why is precise and comprehensive tax reporting particularly significant for individuals involved in cryptocurrency investments, and how might accurate reporting influence the broader cryptocurrency industry?
A Accurate tax reporting is significant irrespective of it being a crypto capital gain. It just gains more importance in the case of crypto as it is still not a properly regulated asset. To top it, governments have a close eye on this asset class due to its mechanism of being not completely traceable in movement of value. Proper accurate reporting will drive confidence in the space and should help the broader cryptocurrency industry per se.
5. Could you outline the future trajectory envisioned for Descrypt? What plans does the company have for further advancements and innovations in the realm of cryptocurrency taxation?
Descrypt intends to be on the forefront of crypto compliance in the months to come. We plan to expand to other jurisdictions (US, UK) and thereby become a full fledged crypto taxation tool supporting retail investors, organizations holding crypto, etc.
6. Could you provide insights into the recently introduced feature “Notice Mitra” by Descrypt and elaborate on how it functions to benefit users?
Notice Mitra is a one of its kind offering to taxpayers in India (either residents or non-residents). Our expert panel of Chartered Accountants are well equipped with tools necessary to solve for any issues that such taxpayers face. The offering is quite simple : in the event of an individual taxpayer receiving an IT notice irrespective of it being related to crypto taxation, they can book a slot with one of our panel members through Descrypt. Based on the type of the notice, we redirect them to the member in the panel who we feel would be best suited to guide them on potential remediation measures. We have kept it at a very affordable price again to ensure taxpayers stay compliant.
