TaxBit, a major startup in the cryptocurrency tax area, has raised $ 100 million as it expands to Europe.
According to a March 3 blog, TaxBit received money in a Series A tour led by Paradigm and Tiger Capital. Additional investors included PayPal’s venture capital alert, large industrial companies such as Coinbase and Winklevoss Capital, and individual investors such as Bill Ackman, Ryan Smith and Anthony Pompliano, among others.
According to the announcement, the new investment round is a response to the growing global demand for cryptocurrency services amid a similar boom in the cryptocurrency industry, which has reached a market value of $ 1.5 trillion. “The importance of the tax-tailored tax and accounting program is clear,” said Michelle O’Connor, vice president of marketing at TaxBit, in a blog post.
With the money raised recently, TaxBit plans to launch international expansion in 2021. TaxBit CEO Austin Woodward told Forbes that the company wants to enter the UK market as its first destination. The company also plans to launch an SEC-compliant ERP solution later this year.
The TaxBit platform, launched in 2018, is designed to automate the tax compliance aspects of cryptocurrencies for businesses, consumers and governments. Developed by a group of CPAs, tax advocates and software developers, this solution allows users to track the impact of fees on their transactions on cryptocurrency exchanges.
The increase in TaxBit came after the IRS updated its reporting rules for cryptocurrencies to make it clear that investors who have purchased cryptocurrencies in fiat currency do not need to report their “virtual currency” transactions.