PayPal venture arm has invested in US-based tech startup Taxbit, which helps consumers and businesses calculate the taxes owed on cryptocurrency holdings.
Taxbit was founded in 2017 by accountants, tax attorneys, and software engineers. The founders have 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.
So far, virtual currencies 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 will use the funding, of an undisclosed amount, to grow the team and expand the business, Reuters cited the company’s CEO. The startup has also raised funds via Coinbase Ventures, the venture capital division of the popular cryptocurrency exchange, and existing investor Winklevoss Capital, the family office founded by tech entrepreneurs Tyler and Cameron Winklevoss.
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