Crypto companies have to adapt to an ever-changing environment, as the industry is developing despite numerous challenges. It means that companies should work around the clock to create new products or to modify their projects. Recently, the cryptocurrency exchange Bitfinex presented its new project. Bitfinex created a proprietary market surveillance tool called “Shimmer”.
Employees of Bitfinex will receive an email when potential improper trading activity is detected on any of the exchange’s trading pairs. This includes futures as well as margin-enable trades. According to the crypto exchange, this tool will help to prevent activities such as wash trading and layering. The cryptocurrency market is more vulnerable to manipulation than fiat currencies. This tool is useful as it helps to prevent such cases.
The integration of Shimmer with its matching engine will allow Bitfinex to improve market integrity and visibility.
Crypto.com and Bitfinex
This week, payments and cryptocurrency platform Crypto.com issued a statement. However, this announcement was not about surveillance tool as in the case of Bitfinex.
Crypto.com in collaboration with three tax providers simplified the process of cryptocurrency tax reporting for its users.
Importantly, Crypto.com worked with crypto tax calculator CoinTracker, as well as crypto tax software platform TokenTax. Another partner is the crypto tax reporting firm CryptoTrade.Tax.
Customers of Crypto.com will be able to import their historical transactions from the platform, into the above-mentioned tax reporting platforms to generate necessary tax reports.
Users can send this information to tax professionals or transfer to tax filing software.
As a reminder, in 2019 the U.S. Internal Revenue Service (IRS) started to ask cryptocurrency owners to amend their tax filings.
Moreover, the IRS issued its guidelines regarding cryptocurrency tax reporting. Thus, roughly 150 million American taxpayers have to provide information.
Crypto companies such as Crypto.com and Bitfinex have the potential to make life easier for crypto owners thanks to such projects.