TaxBit, a firm providing cryptocurrency tax automation software, says it has secured investments from the venture arms of PayPal and Coinbase, as well as its existing investor Winklevoss Capital.
- The amount invested was not disclosed in an announcement Thursday.
- The backing reinforces "the importance of tailored software solutions, like TaxBit, in driving widespread cryptocurrency adoption," the company said.
- TaxBit automates the complex task of cryptocurrency tax compliance for consumers, businesses and exchanges through its two primary apps.
- PayPal's investment may be significant, with experts having previously told CoinDesk that the payment firm's new-to-crypto customers would face a "huge headache" when it comes to tax time.
- PayPal launched crypto buying and selling services in the U.S. in October.
Read more: Uphold Teams With TaxBit to More Accurately Report Users’ Crypto Trades
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