Taxbit, a US cryptocurrency tax compliance startup, raised US$100 million in a Series A financing led by investment companies Paradigm and Tiger Global. Paypal Ventures, Coinbase Ventures and others including Bill Ackman, Ryan Smith and Anthony Pompliano also joined the round.
Taxbit CEO Austin Woodward said the funds will be invested in the company’s corporate tools and used to expand to Europe this year, where the UK is the first port of call.
Woodward said in a blog post on March 3: “The complexity of taxation and accounting should not be weighed against one of the greatest financial innovations and destructions of the last century-cryptocurrency.”
“Our products are removing some of the biggest obstacles in this emerging asset class. With the support of Paradigm and Tiger Global, we are excited to continue to expand world-class tax and accounting products to enable cryptocurrency to be used by businesses, consumers Continue to flourish with the government.”
Taxbit was established in 2018. Its platform can automate all aspects of crypto tax compliance for individuals, businesses (as well as crypto exchanges, wallet providers, lending platforms, etc.) and local governments that collect bills in virtual currencies. The company said it has processed more than one million tax forms so far.
According to the blog post, as the digital asset market rebounded, the investment round also responded to the increase in global demand for encrypted services, driving the industry’s total market value to approximately US$1.5 trillion. “The importance of Taxbit’s tailor-made tax and accounting software is obvious,” said Michelle O’Connor, Taxbit’s vice president of marketing.
Taxbit hopes to provide enterprise resource planning tools for companies that comply with the US Securities and Exchange Commission. Woodward told Forbes that the tool will help entities “manage foreign currencies like other software tools to achieve crypto transactions with the best tax results.”
What do you think of Taxbit’s tax solution? Let us know in the comments section below.
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