The American online payment company PayPal’s venture capital unit has made an investment in Utah-based tech startup Taxbit which facilitates consumers to calculate the taxes owed on cryptocurrency holdings.
Austin Woodward, CEO and Founder of Taxbit stated that the company will use the cash injection of an undisclosed amount, to expand the team and the business while further adding that “Going international is a huge piece of the puzzle.”
The tax calculating platform has also raised funds from the venture capital division of the popular cryptocurrency exchange, Coinbase Ventures and its existing investor Winklevoss Capital, the family office founded by tech entrepreneurs Tyler and Cameron Winklevoss.
Last year, the online payment system PayPal started allowing its users to buy, sell and hold virtual coins and it is one among the established companies to have taken a deeper interest in digital coins in recent months as the price of bitcoin has surged to record highs.
While bitcoin and other virtual currencies have been attractive to speculators, they have struggled to become widespread forms of payment in part because they are treated as property for tax purposes in the US, making every transaction taxable.
“Taxbit can help people optimize taxes as they use crypto throughout the year. This investment will help us achieve our aim of being the most innovative and trustworthy provider of cryptocurrency tax technology,” Mr.Woodward stated.
Founded in 2017 by accountants, tax attorneys and software developers in order to enable widespread cryptocurrency adoption by automating the regulatory hurdle of tax compliance. Taxbit supports over 4,200 cryptocurrencies, equities, commodities and all fiat currencies. The software developed by Taxbit 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.