PayPal Leads Investment In Crypto Tax Automation Startup TaxBit

Cryptocurrency tax automation software startup TaxBit said it has received a new round of funding led by new investors PayPal and Coinbase Ventures, along with existing backer Winklevoss Capital.

The new funding by major FinTech players helps to “reinforce the importance” of the role that custom software solutions play in advancing widespread cryptocurrency adoption, TaxBit said in a press release on Thursday (Jan. 7).

The Salt Lake City, Utah startup was co-founded in 2018 by Austin Woodward, Bobby Clayson, Brandon Woodward and Justin Woodward — CPAs, tax attorneys and software developers. The company offers cryptocurrency tax calculation and withholding for investors, exchanges and payment services.

According to TaxBit, its tools facilitate the automation of all tasks relating to cryptocurrency tax compliance for individual investors, as well as businesses and exchanges. Its tools like TaxBit Enterprise and TaxBit Consumer aim to simplify and streamline the calculation and reporting of taxes on cryptocurrency transactions.

Austin Woodward, who serves as the company’s CEO, expressed thanks to its clients and other stakeholders “for helping us move the cryptocurrency space forward.” He added that the combined support has also enabled the startup to become among “the most innovative and trustworthy providers of cryptocurrency tax technology.”

PayPal got involved with cryptocurrency in October, making it possible for wallet holders to buy, sell and hold digital coins like bitcoin and Ethereum via their PayPal accounts. This year, people will be able to spend crypto at any of the 26 million merchants currently accepting PayPal. In November, Ternio CEO Daniel Gouldman said in a PYMNTS interview that crypto could become the norm in the next five to 10 years as long as digital currency becomes easier to spend.

In a PYMNTS interview earlier last month, Gouldman said that with PayPal’s size and clout, it is an important player in the mainstream adoption of cryptocurrencies.