TaxBit, a U.S.-based cryptocurrency tax automation software provider, announced on Thursday it scored investments from PayPal Ventures and Coinbase Ventures. The latest investments come just a little over a year after TaxBit raised $5 million through its seed funding round.
As previously reported, Taxbit claims it was created in order to enable widespread cryptocurrency adoption by automating the “regulatory hurdle” of tax compliance.
“TaxBit launched its consumer product in January 2019 and has since helped thousands of cryptocurrency users automate their taxes. The company’s consumer product is often referred to as the ‘TurboTax of crypto,’ as users can easily use TaxBit’s do-it-yourself platform to produce all of their required crypto tax forms in minutes.”
TaxBit further revealed that the new investments from the fintech companies reinforce the importance of “tailored” software solutions, like TaxBit, in driving widespread cryptocurrency adoption.
“TaxBit solutions automate all aspects of cryptocurrency tax compliance for consumers, businesses, and exchanges. TaxBit Enterprise and TaxBit Consumer continue to transform the cumbersome experience of calculating and reporting taxes on cryptocurrency transactions.”
Austin Woodward, CEO and Founder of TaxBit and Certified Public Accountant, went onto add:
“We want to thank our customers, partners, and investors for helping us move the cryptocurrency space forward. This investment will help us achieve our aim of being the most innovative and trustworthy provider of cryptocurrency tax technology.”