Crypto startup, TaxBit has secured funding from PayPal in its latest round of fundraising. TaxBit is a crypto startup that specializes in the taxation of cryptocurrencies.
Crypto taxes has posed a major problem in recent years due to the increasing popularity of crypto assets. This has posed a major problem for crypto holders due to increasing regulations by governments across the world.
Judging cryptocurrency taxes can be complex especially when the person participated in airdrops and made profits from yield farming of staking. TaxBit is looking towards resolving this problems.
This latest fundraising is PayPal first in the company and its latest initiative in the crypto industry. Other investors include Coinbase ventures and Winklevoss Capital. Winklevoss Capital had previously participated in initial funding that raised $5 million.
Austin Woodward, Founder of TaxBit, said: “This investment will help us achieve our goal of becoming the most innovative and trusted provider of cryptocurrency tax technology.”
PayPal Continues to Invest In Crypto Industry
PayPal is increasingly involved in the cryptocurrency ecosystem. Since when it announced its support for cryptocurrencies some months back, the payment company has spread its tentacles in the industry.
In December, the payment giant participated in a $142 million fundraiser to support the development of Paxos. Paxos is the company that provides PayPal’s infrastructure that is dedicated to buying, selling and holding cryptocurrency.
PayPal was also said to be interested in the purchase of BitGo that ultimately failed. In 2021, PayPal plans to make cryptocurrency payments available to the 26 million merchants in its network.
Users will be able to make purchases from merchants, but will not be able to send cryptocurrencies to an outside address or service. In the case of PayPal, it is important to understand that the customer will not have direct access to his funds unlike an exchange platform or even better a wallet.
There have been rumours that PayPal could be contemplating developing a stablecoin for its platform. It remains to be seen whether this would come to fruition in the coming months, but what is certain is that PayPal is here to stay in the crypto niche.
