Taxbit Records Investment From Coinbase And Other Crypto Giants
When digital assets started making their first into mainstream news, various regulators have been looking for ways to tax users. The latest one is that of the IRS, with the regulatory body hunting on tax payments for crypto users.
In what’s would be described as a welcome development on various exchanges to that effect, crypto exchange, Coinbase, and several other parties, including Winklevoss Capital and PayPal, has announced that they will lead the new investment in a budding crypto tax firm, Taxbit.
Taxbit is gradually warming its way into the hearts of various entities in the crypto market. Its rise is coming on the back of various tax regulators worldwide that has rolled out stringent measures for crypto taxation.
Winklevoss Capital led the initial seed round investment of $5 million
Among the various new investors that Taxbit garnered in the crypto sector, they were already listed in Winklevoss Capital’s books after the firm was involved in the initial seed round, which saw them raise $5 million for the firm. Even though the investment giants have all announced the funding, Taxbit is yet to confirm the full amount that it has gotten from the three entities. With IRS choosing to roll out a precise regulation to check the activities of crypto holders, various entities would be hoping to increase their standards to meet the IRS’s expectations.
According to the latest laws that were rolled out by the tax office, it notes in its 1040 draft form that various outfits and investors who dealt in digital assets buyers would have to report their activities. In their submission, the firm noted that individuals and investments should not forget to add various ways to get digital assets, including airdrops or gifts from friends. This means that the IRS is looking to get the full statement of transaction from all private and public entities, provided they dealt with or are dealing in digital assets.
New crypto investments would spring up due to ease in tax software
The IRS statement on their website shows that the firm wants anybody provided they were in the country in 2020 to check a box on the website, which says that they used crypto last year. With this in mind, Taxbit aims to roll out its new tax software, something that various entities are banking on to remain on the right side of the law when it comes to paying tax.
With their new software, entities that wish to use their services would not need to go through the long process, which involves using two reporting methods, something that Taxbithas made easy. It leaves little to wonder that Taxbit has officially increased in the capital with the various entities’ investment in the crypto industry.
Presently, PayPal will be the major benefactor because the payments firm is just making its first into the crypto market, rolling out its services last year. Also, new users would be able to take advantage of this new initiative and make their way into the crypto market.