The Kaupang Krypto platform offers the biggest variety of crypto currencies in Norway. In addition, they have created a useful tax tool, which of course is voluntary to use, which gives users the correct tax figures for their tax return.
Started out at NTNU
Three years ago, four students from NTNU (Norwegian University of Science and Technology) in Trondheim, decided that they wanted to build a crypto exchange with great flexibility and a simple user interface. Their plan was to build Norway’s most user-friendly cryptocurrency exchange service, where crypto interested parties could trade cryptocurrency with settlement in the Norwegian kroner. Naturally, they faced some challenges, especially in regards to a high demand on security.
It helped that these entrepreneurs have a solid technical background and education. Some had great success in the past with games in the Appstore, others had won hackathons abroad. In addition, several have been involved in start-up companies, so the business world was not new to these guys.
Nikolai Gobel, the general manager for Kaupang Krypto, had developed a new Norwegian watch brand in parallel with his studies. Now, however, he is the full-time CFO of the fast-growing Norwegian crypto exchange, or more precisely: crypto-broker, as Kaupang is the counterpart to all the transactions happening on the platform.
“The services in Norway that operated with the exchange of virtual currency were not good enough in our eyes. There were poor user interfaces, low liquidity and insecure services. These were the areas we wanted to improve. The motivation to enter the industry was a desire to make blockchain technology more accessible to most people, and to build the infrastructure that must be in place to use it. “
Over the course of three years, the team has built the company from the ground up, whilst gaining the trust of real customers. CEO Nikolai Gobel aims to continue this strong growth throughout 2020.
“It is important to get to the market as quickly as possible to test solutions for real users, but at the same time be sure that you deliver a secure solution from day one. Now we know that the platform delivers what we wanted to build, and then we can use greater resources to grow. ”
What did the guys in Kaupang build?
On Kaupang Krypto’s platform, customers trade directly with Kaupang as a counterpart. This means that users are guaranteed a certain amount of liquidity for both purchase and sales orders. The company even sets prices, and that against Norwegian kroner.
Managing Director Nikolai Gobel says that this provides several benefits for customers.
“If you want to buy Bitcoin, for example, you place an order on our website with the desired amount. The payment is transferred to our bank account, and when we receive the payment we execute the order. The opposite happens when you sell Bitcoin and are then credited to Norwegian kroner in your private bank account. ”
“This prevents hacking and hacking, as well as enables an easy-to-understand and simple user interface”
The actual onboarding process and becoming a customer, is made on the website. There is a button called Register that leads to BankID verification and a KYC (Know Your Customer) form. According to Nikolai Godel, Kaupang a strict customer approval process.
“If the use and adoption of cryptocurrency is to grow, we must have clear and good rules. We want the authorities to regulate this so that everyone can feel safe, both customers and providers.”
For both beginners and professionals.
Building good scalable technology products, is a challenge virtually all startups are struggling with. One of the main challenges is balancing the needs of different customer segments against each other.
“Customer segmentation and product market fit’ are something many cryptocurrencies are also struggling with. On the one hand, you will be advanced enough for professional users. On the other hand, it is not a man who can not be complicated when I can not become a beginner. “
“Kaupang should be technically advanced enough to embrace a broad clientele, but simple enough to use the platform the first time you trade cryptocurrency.”
Offers a variety of cryptocurrencies
There are thousands of cryptocurrencies in the world, and even more currency exchanges. The reason why there are countless different crosses, is because of the many combinations of cryptocurrencies against each other, or against fiat currency such as dollars and Norwegian kroner. It is only the crypto exchanges that limit how many crosses you can trade, and that is done according to where there is the most liquidity.
At Kaupang crypto you can buy and sell many different cryptocurrencies with settlement in Norwegian kroner. They specialize in exactly this national customer segment. That is according to Godel their unique selling point.
“We set prices to what our customers want, except for tokens on anonymous blocks such as Monero. The most popular are, not surprisingly, Bitcoin, Ether and Ripple, with exchange to and from the Norwegian kroner .”
Useful tax tool
The team behind Kaupang, know that tax reporting of crypto transactions can be complicated for many. Not only is it difficult to keep track of ‘first in, first out’, but if you trade more currencies they will also vary in price against Norwegian kroner, which is what you are obliged to state to the Norwegian Tax Agency.
“It was one of the first add-on products we made. A tax aid that allows you to provide the correct tax figures for your tax return. This happens continuously and automatically, so you will always be aware of your potential tax position ”
Nikolai goes on to say that they have been in contact with the Tax Agency during the preparation of the tax aid. This is in order to make it as accurate as possible. However, he emphasizes that there is no automatic or forced reporting from Kaupang to the Tax Agency. Each user must retrieve numbers themselves and log into Altinn and report what they have earned or lost.