February 1, 2023 10:00 am EST

Secure the Future of Digital Asset Management: sFOX and Bitwave

The growing popularity of digital asset transactions across businesses of all sizes has brought to light questions about taxation.

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The growing popularity of digital asset transactions across businesses of all sizes has brought questions surrounding taxation to light. Understanding what needs to be reported, staying informed on current regulations, and managing multiple trading venues can be challenging. To help investors navigate these challenges, sFOX held a webinar together with Bitwave to discuss the latest news trends and developments in cryptocurrency accounting and taxes.

In this webinar we talk about:

  • Identifying taxable events and reporting requirements
  • Overcoming challenges for successful digital asset management and tax compliance
  • The newest tax regulations and trends



John, sFOX’s Chief Compliance Officer, delved into the evolving regulatory landscape. While the crypto industry has often seen regulation through enforcement, recent developments have started to provide a clearer framework. Regulatory efforts such as broker-dealer definitions and 1099 reporting requirements are emerging. However, the classification of crypto assets as securities, commodities, or otherwise adds a layer of complexity.

Pat emphasized the importance of accurate record-keeping in the crypto space. Data integrity became paramount in light of FTX’s sudden data loss incident. Joe discussed the two facets of reporting: informational reporting on tax forms and reporting income. Essential data points, including transaction specifics, dates, and fiat values, are universally vital.

The discussion also touched upon uncertainties surrounding the taxation of cryptocurrency losses, particularly in cases like FTX’s data loss. Joe pointed out that tax code intricacies require demonstrated actions for loss claims.


What is cost basis tracking and what are the requirements? 5:00

From a tax perspective, how are orders working through different locations? Does a client have to get forms from all the different locations? 7:25

Tax treatments have evolved from a one-size-fits-all approach to more refined guidelines for payments, staking and more. How does one go about filing? What are the requirements for clients? 13:30

For someone who was hacked or lost their funds due to an exchange that is no longer in service, do those losses still need to be reported? 17:56 

What is considered a taxable event? 19:43

What do you foresee happening from an obligation perspective for different types of crypto platforms/exchanges? 29:17 

Although there is still some gray area regarding crypto, The IRS has released draft guidance for cryptocurrency and other digital asset reporting for 2022 tax returns.

What rules have changed from last year? 30:53

What does a client need to think about long term in regard to their filings? 31:47

Another taxable event that is coming up frequently now is airdrops and staking. Is crypto that’s received through airdrops or staking taxable? What is the impact for a client? 35:35

What is the future of staking? 38:45 


Meet The Panelist

Patrick White

CEO and Co-founder at Bitwave

As a serial entrepreneur and cryptocurrency enthusiast, Pat is passionate about the potential for blockchain technology to change the world, and is on a mission to enable that change. He combined his expertise in enterprise software, accounting, and cryptocurrencies to co-found Bitwave in 2018, which provides a complete, end-to-end back office solution for businesses that use Crypto. Over the last decade, Pat White has built enterprise software at companies such as Intuit, Microsoft, VistaConnect, Fortify Software (now HP Security). As Fortify’s Group Product Manager, Pat oversaw the development of award winning security products before leaving to start his first company. Later he co-founded Synata, an enterprise search platform that was acquired by Cisco in 2016, where he worked as the Chief Architect for their Webex Teams Product. Pat has contributed code to Bitcoin, Ethereum, and several other crypto-currency projects
Joe Dillon CPA

Joseph Dillon

Director of Customer and Partner Success at Bitwave

Joe is the Director of Customer and Partner Success at Bitwave. He is a CPA, a Certified Fraud Examiner, and joined Bitwave after spending 12 years in public accounting.

John Mannino

Chief Compliance Officer at sFOX

John is currently the Chief Compliance Officer at sFOX. He joined sFOX after more than two decades of extensive operations and regulatory compliance experience at Goldman Sachs where his last position was Senior Vice President, Global Head Regulation Assurance & Compliance. He has worked at Goldman Sachs offices in New York City, Los Angeles, Zurich and London where he oversaw daily compliance across multiple regulators in the OTC derivative margin and collateral sector while also continuing to navigate the rapidly changing derivative regulatory environment as it emerged globally. John also served as a Finance and Risk Compliance Manager at Accenture, where he helped financial institutions manage and transition product suites that could be potentially impacted by compliance and regulatory changes.
Jackson Finio

Jackson Finio

Head of Product at sFOX

Jack is the Head of Product at sFOX, the full-service crypto prime dealer for institutional investors, providing the liquidity, security, and infrastructure needed to unlock the full potential of digital assets. Jack has been professionally involved in crypto since 2015. Prior to joining sFOX, Jack was CEO and Co-Founder of Fund3, a quantitative hedge fund and OEMS software provider for digital assets.

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