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Paypal will soon do your crypto taxes for you!

Photo of: Nathan VDH
by Nathan VDH

The volume of cryptocurrencies transactions on PayPal breaks a new record at $242 million. Enough to incite the global giant to invest a little more? PayPal makes a first investment with TaxBit.

All indicators are green for PayPal in the field of cryptocurrencies. Since the launch of its service in the U.S. in October, its use has increased significantly. The firm is even accelerating its deployment schedule.

And according to Nomics’ data, the volume of crypto transactions is growing strongly. On January 11, the day Bitcoin and Altcoins crashed, the value of assets traded on PayPal reached $242 million.

The payments giant’s previous record was set on January 6 with $129 million. Others are expected to follow as the adoption of PayPal’s service progresses in the US, and then internationally.

However, PayPal doesn’t intend to stop there when it comes to cryptocurrencies. The company is making its first acquisition to complete its range of services. It thus becomes a shareholder of the startup TaxBit.

TaxBit is an editor specialized in the taxation of crypto-actives. Its solution allows users to automatically determine the amount of their tax. By investing in the startup, PayPal is betting on the democratization of cryptocurrencies.

But up to what point? The firm does not specify the value of its investment in TaxBit. Note that the startup also counts Winklevoss Capital among its investors. Clearly, Tyler and Cameron Winklevoss, co-founders of the Gemini exchange, are also shareholders.

In the United States, the taxation of cryptocurrencies is a growing issue. The American tax authorities will specify their rules on this subject in 2019. The IRS was also activating its services to control the assets of thousands of Americans.

Indeed, they are indeed required to report their transactions in crypto in their tax return. With its application, TaxBit is positioning itself in a market that is set to grow. As for PayPal, its ambition is to increase the usefulness of cryptocurrencies and thus their adoption.

In 2021, “we are going to enable cryptocurrencies to be a source of financing for every transaction made with all of our 28 million merchants. And this will greatly enhance the usefulness of cryptocurrencies,” emphasizes CEO Dan Schulman.

At the same time, PayPal also intends to capture a significant share of the crypto-actives market. The multinational company is planning to make further acquisitions of crypto players for this purpose. BitGo was once on the list of potential candidates. However, this acquisition would no longer be on the agenda.