How do I separate private and company crypto holdings as a director?
By R.T. (Tyler) Dijst, blockchain investigator at Paucitas
How Paucitas separates private and company crypto holdings
We work through all addresses and exchange accounts and determine, per transaction, where the money came in from and where the proceeds went: from or to a private account, from or to a company account, or between your own addresses.
That produces a dividing line with four categories: demonstrably private, demonstrably company, mixed and undetermined. The mixed and undetermined items are the conversation you have with your accountant; we make sure that list is short and specific.
What you supply
The addresses and accounts, the bank statements for private and company over the same period, and any loan agreements or current account arrangements that relate to crypto.
What you receive
An overview per address with the attribution per transaction, a summary per category with amounts, and a list of the items that cannot be attributed unambiguously, with the reason. Plus a position on a reference date, split into private and company.
If you would rather have only the company side, for the annual accounts for instance, you can request that separately. See also company crypto holdings mapped out.
How to get started
You send the addresses and the period. In a first conversation we agree how fine the separation needs to be and what that costs.
European supervisors publish background on crypto assets and the rules that apply to them: see ESMA and EBA.
We do not determine what is private or company for tax purposes. We supply the factual attribution per transaction; the tax classification stays with your accountant or tax adviser.
Frequently asked questions
How do you separate private and company crypto holdings?
Each transaction is examined for where the money came in from and where the proceeds went; that yields an attribution as private, company, mixed or undetermined.
What if everything sits on one wallet?
That is common. The origin and destination of the euro behind it usually still makes attribution possible.
Does Paucitas decide the tax treatment?
No. We supply the factual attribution; the tax classification is for your adviser.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. We prefer to schedule that call through WhatsApp, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.