Big cryptocurrency tax compliance startup TaxBit raised $ 100 million as it expanded into Europe.
TaxBit secured funding in the Series A round led by Paradigm and Tiger Capital, according to a blog post dated March 3. Other investors included PayPal’s Venture Arm, large industrial companies such as Coinbase and Winklevoss Capital, and individual investors such as Bill Ackman, Ryan Smith, Anthony Pompliano and others.
According to the announcement, the new investment round is in response to the growing global demand for crypto services amid the parabolic surge of the crypto industry to a market cap of $ 1.5 trillion. “The importance of TaxBit’s bespoke tax and accounting software is immediately apparent,” said Michelle O’Connor, TaxBit’s vice president of marketing, in the blog post.
With newly raised funds, TaxBit plans to start international expansion in 2021. Austin Woodward, CEO of TaxBit, told Forbes the company wants the UK market as its first destination. The company also expects to launch a corporate resource planning solution later this year in accordance with the US Securities and Exchange Commission.
Launched in 2018, the TaxBit platform was designed to automate aspects of crypto tax compliance for businesses, consumers, and governments. Developed by a group of CPAs, tax attorneys and software developers, the solution enables users to track the tax implications of their dealings on crypto exchanges.
The TaxBit increase comes when the US Internal Revenue Service updates its rules for reporting crypto to clarify that investors who bought crypto with fiat currency do not need to report their transactions under the “virtual currency” question.
