Business

PayPal invests in a startup that calculates taxes on crypto

The value of the investment in Taxbit was not disclosed, but the startup's internationalization is one of the main objectives

PayPal headquarters in the North San Jose innovation district in Silicon Valley.
PayPal headquarters in the North San Jose innovation district in Silicon Valley, California, USA. Photo: Michael Vi / Shutterstock
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  • PayPal, which began allowing consumers to trade and store virtual currencies last year, is among the big companies that have been showing more interest in the area as bitcoin prices soar to record levels;
  • Founded in 2017 by accountants, tax attorneys, and software engineers, Taxbit has developed software that allows companies like cryptocurrency exchanges to generate tax returns for their users, enabling customers to calculate how much they should pay the tax authorities about their cryptocurrencies.

PayPal announced an investment in Taxbit, an American startup that helps consumers and businesses calculate taxes on their holdings in cryptocurrencies.

Taxbit will use the investment (the amount was not disclosed) to expand staff and its business, said Austin Woodward, its chief executive and founder. “Internationalization is a big piece of the puzzle,” said Woodward.

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Taxbit also raised funds through Coinbase Ventures, the investment arm of the popular cryptocurrency exchange, and Winklevoss Capital, a family office founded by technology entrepreneurs Tyler and Cameron Winklevoss.

PayPal, which began allowing consumers to trade and store virtual currencies last year, is among the big companies that have been showing more interest in the area as bitcoin prices soar to record levels.

Founded in 2017 by accountants, tax attorneys, and software engineers, Taxbit has developed software that allows companies like cryptocurrency exchanges to generate tax returns for their users, enabling customers to calculate how much they should pay the tax authorities about their cryptocurrencies.

READ ALSO: Brazilians would make more bank transfers if they were free of charge

While bitcoin and other virtual currencies are attracting speculators, cryptocurrencies have struggled to become widespread forms of payment, in part because they are treated as a property for tax purposes in the United States, making all transactions taxable.