According to a recent report by The Information, TaxBit, a cryptocurrency tax and compliance firm, has dismissed its 80 employees, or about 40% of its workforce. This news took the financial community by surprise since TaxBit just received a valuation of over $1 billion, granting it the coveted title of “crypto unicorn.”
TaxBit Employees Faced Cutbacks Recently
The Information claims that on Thursday, employees were told of the workforce cut. The most recent round of cutbacks have been confirmed by sources including a TaxBit spokesperson and others with knowledge of the matter. It’s important to note that TaxBit previously reduced its employees by 15% in December.
Austin Woodward Departs
Even though the crypto exchange recently expressed plans to increase its job opportunities, hoping to double its 80-person staff, there has been a significant workforce reduction. In addition, former Intuit executive and TaxBit COO Lindsey Argalas took over for departing CEO and co-founder Austin Woodward on the same day the news came.
Tough Regulatory Environment
The announcement that crypto exchange is cutting 40% of its employees clarifies the difficulties many of the firms involved in the cryptocurrency industry are facing due to the shifting regulatory environment. Governments throughout the world have stepped up their attempts at controlling cryptocurrencies, with a focus on investor protection and tax compliance.
TaxBit’s Success Contrasts the Layoff
TaxBit is a renowned firm which has gained prominence for its products for tax compliance. According to The Block, TaxBit attained unicorn status in August 2021 as a result of a successful Series B fundraising round that was jointly managed by venture capital firms Insight Partners and IVP. Crypto exchange also launched the TaxBit Network in 2022 to give crypto traders free tax forms. At its launch, the organizations included more than a dozen American businesses, including PayPal, Coinbase, Binance.US, Paxos, and Gemini.
As TheCoinRise reported in March of this year, mobile payment processor Cash App has integrated TaxBit into its services, giving Bitcoin users a more improved and reliable way to file their taxes.