Bitcoin Law Basics
The law surrounding Bitcoin is still developing, with new changes coming every day.
The attorneys at Walters Law Group can assist with a wide variety of legal issues associated with cryptocurrency
including Bitcoin ATMs, Wallets, Exchanges, Gaming Sites, Smart Contracts, Brokers, and more. Learn some of the basics here:
Age and Identity Verification
Remember that alternative currency is no substitute for proper 'Know Your Customer' ('KYC') protocols. If accepting altcoins as payment, some other form of KYC procedures should be put in place for these customers to ensure, first of all, that customers of are of proper age and secondly, that the customer has not been banned or is otherwise not eligible to receive the site's products or services.
Refund Policies
When accepting altcoins, it is important to implement clear refund policies. Will customers be refunded in altcoins if they pay in altcoins? Will all payments immediately be converted to cash value? Customer disclosure is key as with all issues involving trade practices.
Cashing Out
This one is simple: Cash out frequently. The volatility of alt currency can result in spikes; both up and down. The more often a business cashes out altcoins payments for real money, the lower its risk of loss through value fluctuations.
Tax Issues
Pay all required taxes, and stay current on how altcoins are being treated for accounting purposes. This is all new, and the details are still being sorted out at the state and federal levels. Predictably, the IRS is making use of altcoins complicated, so get professional tax advice on how payments should be treated for accounting purposes. Take a conservative approach, and do not use Bitcoins to avoid paying taxes that would otherwise be due.
Risk Mitigation
Recognize that there is some risk involved in any novel business model or payment method. Follow basic security standards and keep a watchful eye on the value of any altcoins you may accept.