Blockpit, an Austrian compliance expert and developer of software solutions for digital assets, has acquired its biggest competitor, the German startup CryptoTax. Both regtech companies provide tax software for cryptocurrencies.

Despite similar offerings and operating in the same market, the two organisations “have different focuses and strengths,” says Florian Wimmer, founder and CEO of Blockpit. The goal of the acquisition is to become a bigger threat to other European providers and ultimately expand throughout the US.

Currently their combined tax reporting services cover Germany, Austria, Switzerland and the US. Coverage for new markets (the UK, Canada, Australia, South Korea and other EU countries) is slated for 2021.

For now, the teams of both Blockpit and CryptoTax will remain in place in Linz and Munich respectively. The acquisition won’t change anything for existing customers either. Over the next few months, the CryptoTax frontend will be redesigned and adapted to the Blockpit interface.

Last year, the Austrian startup secured €2.5 million in financing, some from angel investors but most from its security token offering.