Tax advisory

Tax services for cryptocurrency exchanges are a highly specialized service for operators of digital-asset trading platforms, which operate at the intersection of blockchain technology and a strictly regulated financial system. Cryptocurrency exchanges face unique challenges: from the proper tax settlement of their own operating revenues (commissions, listing fees, market making) to fulfilling the roles of a payer or reporting entity under international information-exchange standards. At BTTP, we understand that, for an exchange, taxes are not only its own cost but above all a matter of regulatory credibility, which directly affects relations with banks and regulators, as well as users’ trust.

Unlike advisory services for investors, BTTP’s tax services for exchanges focus on the architecture of tax processes within the platform. Records of exchange operations must take account of the specifics of VAT settlements for financial services provided, withholding tax (WHT) on payments to foreign partners, and the correct recognition of the exchange’s own assets (proprietary trading). We pay particular attention to tax issues related to loyalty programmes, staking offered to users, and the issuance of the exchange’s own tokens.

Many cryptocurrency exchanges operate within international structures, which raises complex questions of tax residence, the existence of a permanent establishment abroad, and transfer pricing between group companies (e.g. between the platform operator and the technology provider). BTTP supports the reduction of these risks by helping obtain individual tax rulings and protective opinions that protect the exchange’s business model from being challenged by tax authorities.

The combination of knowledge of international tax law, Web 3.0 technology and audit procedures makes it possible to build a secure environment for the development of crypto businesses. At a time of increasing regulation of the crypto-assets market (MiCA, DAC8), professional tax services are an important issue for exchanges, allowing stable development and effective competition in the global financial market.