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.

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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.

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