PayPal, Coinbase Invest in Crypto Tax Automation Startup TaxBit

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