Bitcoin Millionaires Tyler and Cameron Winklevoss Back Cryptocurrency Tax Startup
Winklevoss Capital, the venture company spearheaded by Bitcoin moguls Cameron and Tyler Winklevoss, is joining a $5 million seed funding round for Taxbit, a crypto-focused tax reporting firm.
Dragonfly Capital Partners, Global Founders Capital, Valar Ventures and others also participated in the round, according to a January 6th announcement.
TaxBit’s “TurboTax of crypto” is a tax software solution designed to help cryptocurrency owners, merchants and exchanges automate their taxes. The do-it-yourself product supports more than 2,500 cryptocurrencies.
The Utah-based tax firm seeks to use the fresh capital to develop its platform and grow its customer base. The company is targeting markets in the US, UK, Canada and Australia.
The company is aiming to keep its software up-to-date with evolving guidelines from the IRS. Last summer, the tax collection agency sent 10,000 letters providing educational content on tax reporting to US crypto users. The IRS also issued its latest guidance on cryptocurrency taxation in October of last year.