Two giants of the digital industry, and Paypal, have just announced significant investments in TaxBit, the company that develops software for calculating and paying taxes in cryptocurrencies.
In a release recently issued by TaxBit, the company that offers automation software for calculating taxes cryptocurrencies, for users, merchants, exchanges and other companies in the digital industry, reported that PayPal Ventures, Coinbase Ventures y Winklevoss Capital made significant investments in the company.
Although the statement does not detail the amount of funds that each of these companies invested in TaxBit, it does reflect that these funds were used to continue driving the development and growth of the company and its effective solutions for tax payments, as the crypto industry grows and consolidates. According to the statement, the new investments made by these important financial technology companies, which manage part of the digital industry, will also allow the development of innovative products by TaxBit, which will further promote the widespread and responsible adoption of cryptocurrencies and digital assets.
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Tax clarity for the digital industry
TaxBit is a company created in 2017 by a group of public accountants, tax lawyers and software developers who together devised a feasible solution to enable the automation of tax compliance, and overcome this as a regulatory barrier and obstacle that allows promoting the widespread adoption of cryptocurrencies worldwide. This company offers its services to both individual users and investors, as well as professional traders and companies in the industry.
The company was born with the vision of providing tax clarity in an industry that is constantly moving and evolving, where markets can experience great volatility for days, weeks or months. Thus, according to its director and founder, Austin WoodwardTaxBit helps minimize the potential confusion surrounding the calculation of specific cryptocurrency income from activities such as staking, mining, and airdrops by providing secure and reliable software that automates these calculations.
An investment for future development
Woodward said this investment will significantly help the company achieve its goal of being “the most innovative and trusted provider of cryptocurrency tax technology.”
Of its recent investors, Winklevoss Capital is a venture capital firm founded by twins Tyler Winklevoss and Cameron Winklevoss in 2012, that invests in cryptocurrencies and different asset classes with the vision of providing infrastructure and seed funding for growing companies. This company confirmed its investment in TaxBit through its Instagram account, where the twins stated that they were delighted to continue supporting TaxBit to further automate cryptocurrency tax compliance, as an integral piece to drive the mainstream adoption of this industry.
For its part, Coinbase, also born in 2012, is one of the largest cryptocurrency exchanges on the market by trading volume. This company, led by Brian Armstrong as its current CEO, claims to be committed to providing innovative and sophisticated services for the space, as more institutions enter the crypto ecosystem. Likewise, Paypal, the electronic payments giant founded in 1998, recently joined cryptocurrencies in 2020, opening the doors to mass adoption of crypto assets thanks to its more than 360 million active users, according to data from The report of Statista.
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