Cryptocurrency tax automation software startup TaxBit has collected $5m in its seed funding round.
Investors to the round included TTV Capital, Valar Ventures, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital, Global Founders Capital, Table Management and Album VC.
TaxBit has a goal of encouraging the widespread adoption of cryptocurrency by automating the regulatory obstacles. Its technology will complete all back-end complexities, while giving clients a user-friendly experience.
The US-based startup launched its services in 2019 and has since helped thousands with cryptocurrency taxes, it claims.
It works by syncing all transactions from the top exchanges into a single location and automatically listed into tax forms. A full audit trail is supplied so a customer can track how the taxes were calculated.
With the fresh line of funding, the company is looking to enhance its products and accelerate customer growth across the US. It also plans to move into international markets, with Canada, the UK and Australia first on its list.
TTV Capital partner Sean Banks says, “For cryptocurrency to proliferate further, an ecosystem of compliance tools must be created.
“We are very impressed with the TaxBit team and the platform they are building. This technology is fundamental to the adoption of cryptocurrency, as it enables the industry to progress while being compliant with tax regulations worldwide.”
Cryptocurrency has had a turbulent adoption around the world, with regulators still figuring out how to handle them. Last year, the House of Representatives revealed it was looking to vote on legislation which would dictate how the Commodity Futures Trading Commission (CFTC) should regulate crypto assets.
The bill would mean cryptocurrencies would need to follow guidelines before being tradeable.
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