- PayPal leads the investment in TaxBit, a crypto tax automation startup
- Other investors include Coinbase Ventures and Winklevoss Funds
- The funds will help TaxBit compete at an international level
- PayPal can help the mainstream adoption of cryptocurrencies
TaxBit, a cryptocurrency tax automation program, has announced a new round of funding. According to the announcement, the new round was led by new buyers PayPal and Coinbase Ventures, alongside current backers of the startup, Winklevoss Funds.
From the onset, the company had planned to go international, and the new round of funding is aimed at achieving the goal. Austin Woodward, the company’s chief executive, and founder announced that Taxbit will use the cash injection, of an undisclosed amount, to grow the team and expand the business.
What is TaxBit?
TaxBit is a tax automation software startup. The startup specializes in performing crypto tax calculation and withholding for investors, exchanges, and payment services.
The crypto startup has pioneered tools like the TaxBit Enterprise and the TaxBit Consumer. These tools are designed to simplify and streamline the calculation and reporting of taxes on cryptocurrency transactions.
The company is based in Salt Lake City, Utah, and was founded in 2018 by Austin Woodward, Bobby Clayson, Brandon Woodward, and Justin Woodward. Its founders previously served as tax attorneys and software developers.
Austin Woodward believes that the tools developed by TaxBit will help in moving the cryptocurrency space forward. With their newly found support, he believes that the startup will grow to become among “the most innovative and trustworthy providers of cryptocurrency tax technology.”
On the Flipside
- In other news, Modulr, a Payments-as-a-Service application programming interface (API) platform, has received $11.9 million in investments from PayPal to boost its services and develop new products.
- As Intercart, the popular checkout funnels app prepares its Initial Public Offering (IPO) it has announced a new Chief Financial Officer.
- According to the announcement, Nick Giovanni will succeed present CFO Sagar Sanghvi, and the two will be working together for a smooth IPO.
PayPal is Becoming An Important Player in Mainstream Crypto Adoption
In the last 6 months, PayPal’s involvement with cryptocurrencies has been increasing at a massive rate. Following a partnership with Paxos in October 2020, 325 million active PayPal users can now buy and trade cryptocurrencies.
In November 2020, PayPal announced that it had invested $11.9M in Modulr, a payment services platform. Also in 2020, the leading payment platform entered talks to purchase crypto exchange BitGo. After negotiations failed, PayPal has reportedly turned its sight towards other exchanges.
As PayPal increases its interest in the crypto space, crypto enthusiasts believe that its move could simplify the process of mainstream adoption.
For example, it is predicted that digital assets could incredibly easier to buy, trade, and spend in the next five to 10 years thanks to PayPal and other payment platforms.
In December, Daniel the CEO of Ternio said that the size and clout of PayPal’s size will make it an important player in mainstream crypto adoption.
The theme remains the same with institutional investors and mega tech firms; the more these firms adopt cryptos and blockchain, the easier it will be for the larger public to do the same.