What is CryptoTaxEdge?
CryptoTaxEdge is a US digital-asset tax-treatment classification engine, available as an API. Given a blockchain transaction hash, it returns the tax category, the treatment (disposal, income, non-taxable, expense, or needs-review), a confidence score, and the reasoning. Platforms and developers embed it by API or MCP; accounting firms use it in-app for client work.
What does the classification API return?
One call returns the transaction category (such as swap, reward, or bridge), the tax treatment, a taxable flag, a confidence score from 0 to 100, a needs-review flag, and the assets sent and received. When sources conflict or confidence is low, it returns needs-review with the taxable flag set to null instead of guessing.
How is tax treatment determined?
Multiple independent blockchain data sources parse each transaction in parallel. A patent-pending AI consensus engine reconciles them, applies 13,000+ verified protocol rules, and maps the result to one tax treatment under US framing: disposal under IRC section 1001, income under IRC section 61, or non-taxable. Grey-area categories expose a documented house default and the alternative position, and are configurable per firm.
Can I try it without signing up?
Yes. Classify up to 10 transactions a day for free: no account, no credit card, nothing. Re-running the same hash is always free and never counts against the limit. Create a free account to unlock 250/month. Upgrade anytime for higher limits.
How accurate is the AI classification?
Multiple independent providers parse each transaction; our patent-pending AI engine resolves disagreements and surfaces a result only when sources align. When the engine is not confident, it says so: low-confidence transactions are routed to review rather than silently guessed at. The confidence score on every result is an internal routing signal that gates that decision, not a quality claim. Verify classifications with a qualified tax professional before filing.
Do you store my wallet data?
We never connect to your wallet or ask for private keys, and classification runs on publicly available blockchain data using transaction hashes. If you create an account, we store standard account data such as your email address, as described in our
Privacy Policy. Anonymized, aggregated classification data improves the engine over time and is never linked to your wallet address.
What chains are supported?
80+ chains including Ethereum, Base, Arbitrum, Optimism, Polygon, BSC, Solana, Avalanche, zkSync, Scroll, Linea, Blast, Fantom, Gnosis, and many more. Chain detection is automatic. Just enter your hash.
Can I use this with Koinly?
Yes. Our CSV export is formatted to match Koinly's import format. Every transaction includes the exact tag Koinly expects. No manual mapping needed.
How do you count transactions?
Per transaction: one hash is one transaction, whether it is a transfer or a swap. Re-running the same hash is always free, and only successful classifications count; a failed or review-routed result never uses your quota. In the app: 10 a day with no account, 250/month on a free Developer account, unlimited on the Firm plan. Via the API: the same 250/month Developer pool, ~25,000 on Pro, usage-based on Enterprise.
How many team members can we add on the Firm plan?
The Firm plan is $99/month and includes 2 seats. Additional seats are $49/month each.
How does the Classification Explorer work?
Enter transaction hashes, one at a time or as a CSV batch. The Classification Explorer classifies each transaction through our multi-source pipeline and exports a Koinly-ready CSV, saving hours of manual work.
How is this different from Koinly, CoinTracker, or TaxBit?
Most tools rely on a single labeling vendor or static rule set, then guess silently when the data is ambiguous. CryptoTaxEdge runs every transaction through multiple independent data providers in parallel, our patent-pending AI engine resolves disagreements, and any unresolved conflict gets flagged for review instead of guessed at. The output you import into Koinly, CoinTracker, or your firm's tax stack is verified, not invented.
Is swapping one cryptocurrency for another a taxable event?
Yes. Under US tax rules a crypto-to-crypto swap is a disposal of the asset you send, a capital gain or loss event under IRC Section 1001. CryptoTaxEdge classifies swaps as a taxable disposal. This is informational only, not tax advice; verify with a qualified tax professional before filing.
Is wrapping ETH into WETH a taxable event?
The common position is no. Wrapping or unwrapping is the same underlying asset in a different form, not a change of ownership, so CryptoTaxEdge treats it as non-taxable by default. Some practitioners treat it as a disposition, so the treatment is configurable to your firm's stance. This is informational only, not tax advice; verify with a qualified tax professional before filing.
How is a liquidity pool deposit taxed in the US?
There is no LP-specific IRS guidance, so it is genuinely two-sided: a deposit or withdrawal can be treated as non-taxable or as a crypto-to-crypto disposal depending on your firm's position. CryptoTaxEdge flags liquidity events as a grey area and lets your firm set the house treatment rather than guessing. This is informational only, not tax advice; verify with a qualified tax professional before filing.
Are crypto staking rewards taxable?
Yes. Under Rev. Rul. 2023-14 the IRS treats staking rewards as ordinary income at their fair market value when received. CryptoTaxEdge classifies reward claims as income at receipt. This is informational only, not tax advice; verify with a qualified tax professional before filing.
Is bridging tokens to another chain a taxable event?
The common position is no. Moving the same asset across chains through a bridge is not a disposition, so CryptoTaxEdge treats a bridge as non-taxable. This is informational only, not tax advice; verify with a qualified tax professional before filing.