{"id":21551,"date":"2023-06-12T11:56:17","date_gmt":"2023-06-12T15:56:17","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/crypto-tax-software-firm-taxbit-lays-off-almost-40-of-its-staff\/"},"modified":"2023-06-12T11:56:18","modified_gmt":"2023-06-12T15:56:18","slug":"crypto-tax-software-firm-taxbit-lays-off-almost-40-of-its-staff","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=21551","title":{"rendered":"Crypto Tax Software Firm Taxbit Lays Off Almost 40% of Its Staff"},"content":{"rendered":"
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Taxbit \u2013 a software company that assists cryptocurrency holders with tax compliance issues \u2013 has cut nearly half of its staff in an effort to re-expand in the U.K. and EU, the company told employees on Thursday.\u00a0<\/p>\n

The layoff applies to 80 people, representing 40% of the company\u2019s total staff, piling onto the 15% of workers released last year. The announcement<\/u> arrived the same day that the Utah-based firm\u2019s co-founder and CEO, Austin Woodward, stepped down from his role to be replaced by former Intuit executive Lindsey Argalas.\u00a0<\/p>\n

Argalas joined Taxbit only a year ago, and her appointment makes her one of the few female CEOs of a major crypto firm.\u00a0<\/p>\n

\u201cI’m honored to be in that position,\u201d she said of her appointment, according to Forbes. \u201cUltimately, we are a software company that is solving a complex tax and accounting need.\u201d<\/p>\n

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Meanwhile, Woodward will be moving into a different role: \u201cThis transition enables me to dedicate my efforts to nurturing strategic partnerships, fostering innovation and offering guidance to ensure TaxBit\u2019s ongoing success,\u201d he said.<\/p>\n

Firms like Taxbit are especially important to the crypto industry, where tax laws continue to evolve and the regulatory climate grows harsher by the day.\u00a0<\/p>\n

Last month, President Joe Biden took to Twitter to voice support<\/u> for cutting \u201ctax loopholes that help wealthy crypto investors.\u201d The White House also pushed Congress to implement a 30% tax<\/u> on Bitcoin miners across the country \u2013 though this appears to have been taken<\/u><\/a> off the table amid debt ceiling negotiations.\u00a0<\/p>\n

Among Taxbit\u2019s existing customers are major firms like PayPal<\/u>, Google, Block, Fidelity, and Ralph Lauren \u2013 some of which hold crypto on their balance sheets on behalf of customers buying digital assets on the platform.\u00a0<\/p>\n

Taxbit raised $130 million in Series B funding in August 202, giving it a valuation of $1.3 billion at the time. It was this year\u2019s only newcomer to the Forbes Fintech 50<\/u>.\u00a0<\/p>\n

Crypto Layoffs and Relocation<\/h2>\n

A mix of declining digital asset prices throughout last year and ongoing regulatory pressure has forced the crypto industry to wind down its collective workforce over the past 12 months.\u00a0<\/p>\n

Coinbase, America\u2019s largest cryptocurrency exchange, has already announced<\/u> three rounds of layoffs since June 2022, with the most recent in January affecting 950 employees.\u00a0<\/p>\n

Coinbase is now being sued by the Securities and Exchange Commission (SEC) for multiple violations of the nation\u2019s securities laws. Similarly to Taxbit, Coinbase has expressed interest<\/u> in relocating its headquarters to the U.K. if it cannot overcome regulatory hurdles within the United States.\u00a0<\/p>\n

Kraken also announced a mass layoff<\/u> of 1100 employees late last year and was slapped with a $30 million fine by the SEC in February.\u00a0
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