Posted 5 months ago | by @devadmin
PayPal and Coinbase’s venture arms have backed cryptocurrency tax automation software, TaxBit, for the purpose of crypto taxation.
Reuters reported, the investment expressing that the money will be used to grow the team and expand the business, said Austin Woodward, the company’s chief executive, and founder.
“Going international is a huge piece of the puzzle,” Woodward said in an interview with Reuters.
Although, the exact amount invested was not disclosed according to an announcement Thursday. The firm also received additional investment from previous backers, Winklevoss Capital which owns the Gemini exchange.
The backing reinforces “the importance of tailored software solutions, like TaxBit, in driving widespread cryptocurrency adoption,” the company said.
TaxBit automates the complex task of cryptocurrency tax compliance for consumers, businesses, and exchanges through its two primary apps.
Founded in 2017 by accountants, tax attorneys, and software engineers, Taxbit has developed software that enables companies like cryptocurrency exchanges to issue tax forms to their users and to allow consumers to calculate how much tax they owe on their crypto annually.
PayPal launched crypto buying and selling services in the U.S. in October. But many are unaware of how crypto taxes are handled who are dabbling in crypto through Paypal. Every time an individual spends or trades a cryptocurrency, they’re triggering a taxable event. Adding to the confusion are crypto-specific, income-generating tools such as staking, mining, and airdrops.
Bitcoin is currently trading at [FIAT: $38,393.95] UP +7.9% in the last 24 hours according to Coingecko at the time of this report.