Utah cryptocurrency tax software startup Taxbit was able to raise $100 million in early March as funding for the development of their cryptocurrency tax software. Some of the investors that contributed to Taxbit included Winklevoss Capital, Paypal Ventures, Galaxy Digital, as well as other notable names in the industry like renowned investor Bill Ackman and Qualtrics Chairman Ryan Smith, among others.
This development comes after Bitcoin recently hit a $1 trillion market cap last February 19, prompting more people to jump into the digital asset market.
Taxbit will be using the funding to enhance their cryptocurrency tax software and look for expansion opportunities in Europe, particularly in the UK.
Taxbit’s tax software aims to improve and simplify the complicated process of handling crypto taxes, especially since the Internal Revenue Service (IRS) in the United States’ regulations for trading cryptocurrency includes taxation for all kinds of profit.
‘The entire existence of this asset class that can be so disruptive to our financial sector is at risk because of tax and accounting compliance at scale,’ founder and CEO of Taxbit Austin Woodward shared in an interview with Forbes.
Woodward also spoke with Taxbit’s VP of Marketing, Michelle O’Conner in an article published last March 2 on their site wherein he mentions that Taxbit’s role in the cryptocurrency industry is to remove complex tax requirements.
‘At Taxbit, we believe that one of the greatest financial innovations and disruptions of the century, cryptocurrency, should not be weighed down by the complexities of tax and accounting,’ he stated.
‘The past 12 months at Taxbit have been monumental, as our products are moving some of the largest roadblocks of this emerging asset class. With the support of Paradigm, Tiger Global, and many other amazing investors, we are excited to continue to scale world-class tax and accounting products so that cryptocurrency can continue to thrive among enterprises, consumers, and governments,’ Woodward added.
Taxbit was founded in 2018 by Woodward and his brother Justin with the goal to solve cryptocurrency tax problems and streamline the taxation process for people and businesses that invest in or trade digital assets.
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