If you’re considering accepting cryptocurrency as payment for your goods or services, important legal and business factors must be addressed first. Part I of this article explores the commercial implications of accepting cryptocurrency and the steps to get started, while Part II covers when and why legal guidance is essential for compliance and protecting your business.
Part I: The ABCs of Accepting Cryptocurrency in Your Business
The Advantages of Accepting Cryptocurrency
Lower Transaction Fees – Traditional credit card processors charge 2.5%–3.5%. Crypto transactions via some platforms can be significantly cheaper, especially for international payments. Payment with cryptocurrency is particularly useful for microtransactions or international purchases.
Faster Settlement – Crypto payments settle much faster than bank transfers, especially across borders — often within minutes, depending on the network. This is especially valuable in countries where international wire transfers are slow or expensive.
Privacy and Control Over Funds – Customers don’t need to rely on banks or centralized payment providers. Crypto payments can be made with less personally identifiable information than credit cards or PayPal.
International Convenience and Access to a Global Customer Base – Crypto makes it easy for international customers to pay without dealing with currency exchange, delays, or high remittance fees. Accepting crypto makes your business accessible to unbanked customers or those in countries with currency instability or restrictive banking systems.
Fraud Reduction – Once confirmed, payments are immutable and secure, minimizing chargebacks and disputes that are common with credit cards.
Brand Perception & Marketing – Positioning your business as crypto-friendly can appeal to a younger, tech-savvy demographic and differentiate you from competitors.
Potential Appreciation (if you hold it) – If your business opts to hold some crypto, you could benefit from appreciation, though this carries risk. Cryptocurrencies can also depreciate.
Top Cryptocurrencies to Accept
For general commerce, you want coins that are widely used, stable, and liquid:
- Bitcoin (BTC) – Most well-known, but transaction fees can be high.
- Ethereum (ETH) – Popular and widely supported, but gas fees fluctuate.
- USD Coin (USDC) – A stablecoin pegged to the U.S. dollar, ideal for avoiding volatility.
- Tether (USDT) – Another major stablecoin, also dollar-pegged.
- Litecoin (LTC) – Faster and cheaper than Bitcoin, often used for smaller purchases.
- Solana (SOL) – Gaining traction for fast, low-cost transactions.
*Recommendation: Start with BTC, ETH, and a stablecoin (preferably USDC).
Actions Required to Accept Cryptocurrencies
- Choose a Payment Processor or Wallet
- Coinbase Commerce, BitPay, NOWPayments, or OpenNode:
These platforms handle the backend, allow auto-conversion to fiat, and reduce volatility risk.
- Direct Wallet (DIY):
You can use a non-custodial wallet like MetaMask, Trust Wallet, or Ledger. However, you must manually handle accounting, taxes, and conversions.
- Coinbase Commerce, BitPay, NOWPayments, or OpenNode:
- Integrate with Your Website or Point-of-Sale System
- Payment processors offer plugins for Shopify, WooCommerce, and other platforms.
- You can also generate QR codes for wallet addresses for in-person payments.
- Decide Whether to Convert or Hold Crypto
- Auto-convert to fiat (less exposure to volatility).
- Hold crypto in your wallet (potential gains/losses).
- Update Your Invoicing and Accounting Process
- List crypto options on invoices or checkout pages.
- Track values in USD at the time of transaction for tax compliance.
- Educate Staff and Customers
- Ensure your team knows how the system works.
- Consider a short FAQ on your site explaining how customers can pay with crypto.
Regulatory & Tax Considerations
Tax Treatment
In the U.S., the IRS treats crypto as property. This means each transaction is a taxable event. You must record the fair market value (in USD) at the time of receipt for income reporting. When a buyer uses crypto to pay for something, it’s treated as if they sold that crypto. They must calculate capital gain or loss based on the difference between the crypto’s fair market value at the time of purchase and their cost basis (what they paid for it originally). You will likely need legal counsel to ensure you take the appropriate steps to avoid unintended tax consequences.
State-by-State Licensing
Some states require money transmitter licenses if you hold or convert crypto for customers. If you accept crypto via a third-party processor, this often does not apply, but check with a legal advisor. You should consult an attorney in the jurisdiction in which you are operating to determine any licensing requirements.
Know Your Client/Anti-money Laundering (KYC/AML) Considerations
If you’re dealing with large crypto transactions or customers in high-risk jurisdictions, AML rules may apply. Payment processors often handle this for you. Again, legal counsel can help you determine whether these regulations are applicable, and if so, how to set up controls to comply.
OFAC & Sanctions Compliance
You are responsible for ensuring you do not do business with sanctioned individuals. Again, major processors have controls in place for this.
Sales Tax Still Applies
You still collect and remit sales tax in USD, as you would with any other transaction.
Next Steps—The Checklist
Step 1) Decide which cryptocurrencies to accept (start with BTC, ETH, USDC)
Step 2) Choose a payment processor (e.g., Coinbase Commerce or BitPay)
Step 3) Set up wallet/account and integrate with your checkout/invoicing system
Step 4) Consult a tax professional and legal professional to ensure proper compliance and reporting
Step 5) Update your policies, staff training, and customer communication
Step 6) Monitor transaction volumes, fees, and customer feedback
Part II: Why Your Business Needs a Crypto Lawyer—Navigating the Legal Challenges with an Expert
If you’re a business owner considering accepting cryptocurrency payments, you likely recognize the potential benefits discussed in Part I: lower transaction fees, quicker settlements, and access to global markets. But alongside these opportunities come complicated legal and regulatory issues. Hiring a lawyer familiar with both cryptocurrency and traditional business law, like Gil Melman, Geoff Berg, and the other attorneys at Berg PC, can save your business from costly compliance mistakes and legal headaches.
Here’s Why Legal Support is Critical
Cryptocurrency is more than just another payment method; it’s intertwined with complex legal regulations and tax implications. Without proper legal guidance, businesses face significant risks, including regulatory penalties and unforeseen tax liabilities.
How the Attorneys at Berg PC Can Help
- Staying Compliant with Regulations: Crypto regulations vary widely and evolve quickly. The attorneys at Berg PC can help your business identify and comply with these rules efficiently, avoiding costly fines or legal complications.
- Smart Contract Guidance: Smart contracts automate transactions but also carry significant legal responsibilities. The attorneys at Berg PC combine traditional contract law experience with crypto expertise to ensure your smart contracts are secure, enforceable, and compliant.
- Managing Crypto Taxes: Cryptocurrency transactions are taxable events, and mistakes in reporting can lead to expensive penalties. The attorneys at Berg PC help you navigate the tax implications clearly, ensuring accurate reporting and minimizing unexpected tax burdens.
- AML/KYC and Sanction Requirements: Businesses dealing with cryptocurrency must adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations. The attorneys at Berg PC provide strategic advice on setting up internal processes to stay compliant.
- General Corporate and Commercial Legal Advice: As a growing business, your law firm must be able to address general corporate matters such as business formation, partnerships, employment agreements, fundraising, customer and other commercial contract drafting and negotiation, and organizational structure. The attorneys at Berg PC can provide this suite of services in addition to their specialty expertise in the crypto space.
What Makes The Attorneys at Berg PC Different?
The attorneys at Berg PC bring extensive experience in traditional business transactions combined with specialized knowledge in cryptocurrency. Unlike general legal advice found online, their personalized approach means you receive tailored solutions that align with both your business objectives and regulatory requirements.
Taking the Next Steps:
- Understand Your Unique Needs: The attorneys at Berg PC offer personalized consultations to identify and address your specific challenges.
- Compliance Audits: Berg PC performs thorough reviews and gives practical recommendations to ensure your business stays compliant.
- Ongoing Legal Support: Whether you’re implementing smart contracts or navigating complex regulations, the attorneys at Berg PC provide ongoing, specialized legal assistance.
To learn more about how the attorneys at Berg PC can support your cryptocurrency business, contact us and tell us about your project.
Gil Melman – Business & Crypto Transaction
