Cryptocurrency tax automation firm TaxBit has announced a partnership with Coinbase and PayPal Ventures for a solution that automates all crypto tax compliance for exchanges, businesses, and other consumers. The deal also includes a partnership deal with existing investor Winklevoss Capital.
PayPal started accepting virtual coins transactions via its platform late last year. With the price of Bitcoin and other cryptocurrencies rising almost daily, the partnership seems to be coming at the right time.
The new funding received by Taxbit is an indication of the importance of custom software solutions in cryptocurrency adoption.
The Utah-based fintech was co-founded by Justin Woodward, Brandon Woodward, and Austin Woodward in 2018. The firm provides crypto tax collections, for payment services, exchanges, and investors.
Facilitating crypto tax automation
The tools of TaxBit help to facilitate the automation of all tasks related to crypto tax compliance for businesses and individual investors.
PayPal said the fintech’s tools like TaxBit Consumer and TaBit Enterprise will help to streamline and simplify the reporting of taxes on cryptocurrency transactions.
TaxBit’s Chief Executive Officer Austin Woodward has expressed his appreciation to the company’s clients and other stakeholders for helping the firm “move the cryptocurrency space forward.”
He also said the combined partnership and support has enabled the company to become one of the most trustworthy and innovative cryptocurrency tax technology providers.
With the integration of crypto options into PayPal, users can now spend their digital coins easily via their PayPal accounts.
Also, the TaxBit Consumer and TaxBit Enterprise help in reducing the tiring experience of calculating and reporting taxes related to crypto transactions. Since the U.S. tax authorities are collecting taxes on goods bought and sold using cryptocurrency, it’s important to provide an effective tax report system. This is exactly what both tools will offer to their users.
PayPal’s investment is significant
TaxBit has plans to take its business outside the shoes of the U.S. As a result, the company is partnering with various stakeholders to make its goals realizable on a worldwide scale.
The amount the payment giant invested in the fintech was not disclosed in the announcement on Thursday. However, it could be huge, considering the level of the project at stake. The investment may also be significant, as some experts have reported previously that PayPal may be facing a huge task when it comes to crypto tax reporting.