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Can You Receive Your Pay In Cryptocurrency As An employee?

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can you receive your pay in crypto as an employee

As an employee in 2019, there are a lot of things to be taken into account if you were to consider being paid with cryptocurrency by your employer. The question as to if as an employee you can accept cryptocurrency has not crossed majority of employees minds or may have considering that the crypto market is a fluctuating one, however, there’s no denying the fact cryptocurrencies are now more popular than ever.

Not to mention that cryptocurrencies are now broadly used and accepted, although there’s still a long way to go until they catch on but it’s pleasing to the ear that there is an increasing number of places where cryptocurrencies can be spent on legitimate goods and services.

There are quite a number of considerations that need to be paid attention to if you were to accept your pay in cryptocurrency as an employee. What are the risks? What are the tax implications? Which payment processor is good for this particular task? How is cryptocurrency regulations in your country?

These questions are of importance if one is to consider accepting crypto as an employee. Well, authorities handling taxes have different approaches which vary by country and the currency which employees are to be paid. One of the most important aspects that need to be looked into is How is cryptocurrency conceived in your country?

It is pertinent to find as much information as you can lay your hands on about how the government of your country sees cryptocurrencies. Are they seen as illegal or legal? Does your country treat them as commodities, legal tender or properties?

To create more relevance to this point, let’s have a look at some world’s most crypto-friendly countries and how cryptocurrency is being treated in these countries.

Malta

Malta is not only one of the first jurisdictions to have accepted cryptocurrencies, but it’s also home to a great number of important cryptocurrency and Blockchain companies. Malta’s approach to crypto and Blockchain acceptance has made many crypto exchanges to move there, including Binance, one of the most successful crypto exchanges of all time. So, it’s no surprise that salaries paid in crypto are a reality in Malta.

Switzerland

Second on the list is Switzerland, one of the first countries to have fully embraced cryptocurrencies. Also, it’s the country where some of the most outward crypto companies have their headquarters. The KPMG program helps make things very simple for employees who consider accepting their pay in cryptocurrency.

“According to Swiss Labour law, it is lawful to pay all or part of wages in kind or foreign currency, provided that the amount paid matches the amount in Swiss franc contractually agreed by the parties or required by the collective labor agreement,” Swiss Socialist Party member Jean Christophe Schwaab declared.

As specified by the Library of Congress, any cryptocurrency received by an employee becomes part of his/her taxable income.

Canada

Canada is another country that has an approachable view of cryptocurrencies.

According to Gowling WLG. “The CRA considers that when an employee receives cryptocurrency as payment for salary or wages, or otherwise in connection with employment, the amount, computed in Canadian dollars, must be included in the employee’s income under subsection 5(1) of the ITA,”

This implies that employees who want to receive their salaries in cryptocurrencies are to be taxed before the conversion. Cryptocurrencies in Canada are declared as a commodity by the CRA (Canada Revenue Agency).

Australia

Australia is a country that intends to implement cryptocurrencies on a large scale. Thanks to its broad-minded approach towards cryptocurrencies, it caught quite a great deal of headlines in 2018. It is also one of the countries where the Blockchain technology are used to improve tourism.

The Australian Taxation Office states the following: “where an employee has a valid salary sacrifice arrangement with their employer to receive cryptocurrency as remuneration instead of Australian dollars, the payment of the cryptocurrency is a fringe benefit, and the employer is subject to the provisions of the Fringe Benefits Tax Assessment Act 1986.”

Therefore, as long as there is a written agreement between the employee and the employer, employers can legally pay salaries and wages in cryptocurrency.

Singapore

Employees can receive their salaries in cryptocurrency instead of Singapore dollars, and it will be treated as a regular salary and tax obligations will follow just as it would if paid in fiduciary money.

“According to the Inland Revenue Authority of Singapore (IRAS) at the time of writing, it states that payment for goods or services should record the sale based on the open market value (OMV) of the goods or services in Singapore dollars. If the OMV of the goods or services that would have otherwise been exchanged in Singapore dollars cannot be determined, the virtual currency exchange rate at the point of the transaction may be used.” — Via finder.com

Kenya

Although Kenya is one of the Africa countries that greatly embraces cryptocurrencies and has a high volume of crypto trading. A Citibank research in December 2017 ranked Kenya among countries with the largest bitcoin holdings worth $1.63 billion, approximately 2.3 percent of the GDP. However, cryptocurrency regulations are being pondered on by its government. It was reported by BitcoinKE that Central Bank of Kenya (CBK) cautions all commercial banks in Kenya against dealing in virtual currencies.

Ghana

Recently Cryptotvplus reported Ghana SEC cogitating over regulating the cryptocurrency framework. The central bank also expressed an interest in introducing cybersecurity guidelines to guide the use of digital currencies in the country.

There are other Africa countries that embraces cryptocurrencies greatly that can not all be presented in this article.

In conclusion, this article is meant to give some level of guidance with a general idea regarding how various countries treat cryptocurrencies as a means to pay the salaries of employees. Investing in Cryptocurrency education is important when deciding to pay or receive payments in cryptocurrency. As an employee or employer, seek assistance in accountants or lawyers that are versed in cryptocurrencies and do further research at your own diligence.

 

Do you find this article helpful? Do let us know your thoughts, contributions or suggestions in the comment section below.

 

 

Disclaimer:

The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

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Poloniex Acquires TRON-based Decentralized Exchange TRXMarket

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Poloniex in Press Release on the 27th of November, 2019 announced the acquisition of TRON-based Decentralized exchang TRXMarket, renames to Poloni DEX.

TRXMarket, the first TRON-based decentralized exchange executes all transactions via the TRX smart contracts that are stored safely and transparently on the blockchain.TRXMarket is also one of the 127 TRON Super Representatives, and has a huge transaction volume according to data from DApp Review.

According to the Press Release, “The excellent performance of the TRON public chain coupled with its considerable decentralized trading volume and rich experience in operations is exactly what Poloniex needed to expand its DeFi ecosystem.”

Speaking on why Poloniex decided to launch a decentralized exchange on the TRON Public blockchain instead of other popular chains, a spokesperson for Poloniex was quoted saying
“We recognize and value the rate TRON is expanding its ecosystem. Under the leadership of Justin Sun, founder of TRON, TRON’s ecosystem is growing at an exponential speed. After the official launch of TRON public chain in June 2018, within just a year, the total number of accounts on the chain of TRON has exceeded 4.1 million and the daily average number of transactions is over a million, securing a place among the top three public chains in the DAapp ecosystem. Additionally, TRON’s sidechain project, SUN Network, was successfully launched; the circulation of TRC20 protocol-based USDT exceeds 800 million; and, just one month ago, TRON adopted a new Staking mechanism and completed its MainNet upgrade.

It’s hard to imagine all these accomplishments TRON has made within just one year. On top of all that, TRON frees its users of transfer fees and transaction delays, which is DeFi-friendly. I think we have every reason to choose TRON as our underlying infrastructure over other public chains who are slow progressing and charge ridiculously high transfer fees. We need to be responsible for all our users.”

Founder of TRON, Justin Sun also commented on the acquisition “I’m very pleased to see that our strategic partner Poloniex successfully acquired TRXMarket, the top DEX in the community. This acquisition means a lot for the TRON ecosystem. It’s not only a move to expand the DeFi ecosystem, but also represents a starting point of TRON receiving recognition from world-leading exchanges. And TRC20-USDT also serves as a perfect solution for decentralized trading platforms to simplify the deposit and withdrawal process”

Founded in 2014, Poloniex is a world-leading digital asset trading platform registered in Seychelles. It is one of the world’s oldest digital asset trading platforms, offering fundamental services including digital asset margin trading, lending, and crypto-to-crypto exchange for the global blockchain ecosystem.

Poloniex which was founded in 2014 and registered in Seychelles is a leading cryptocurrency exchange offering crypto trading, lending, margin trading services to its users. It recently spin out from Circle which acquired it in February, 2018 to form a new compay called Polo Digital Assets Ltd.

The new firm according the PR issued will have the backing of a major investment group and it will enable it focus on the needs of global crypto traders with new features and continue beyond that with highly competitive pricing models for traders.

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500 Nigerian Devs to be Taken into Ethereum’s Pilot Project

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Following the announcement made by ConsenSys Founder Joe Lubin during the launching of  Devcon 5, which is targeted towards increasing the Ethereum developer’s community to one million, Ethereum.network will be joining forces with Bloceducare a project launched to drive blockchain education, customer support as well as advisory services to leverage on the potential and population of developers in Nigeria to attract developers into the Ethereum community.

 

The project which has been slated for a period of 15 weeks and tagged “500-Nigeria devs for Ethereum” has been designed by Awosika Israel Ayodeji the Creative Director of Bloceducare and commenced on Monday 4th November 2019 and run till February 15th, 2020 with the aim of increasing the number of Ethereum Developers within Nigeria, to achieve this the team intends to add five hundred developers into the global pools of ethereum developers under the onemilliondevs project.

500 Nigeria Devs for Ethereum

The pilot project will aim at having developers building relatable and straightforward use cases that can be implemented within their immediate environment. With ethereum.network financing the project, at the end of the program, developers who emerge as the top three will be rewarded $1,000 each while five other developers will be awarded $300 each for a job well done.

Cryptographic Development Initiatives in Nigeria(CDIN), which is a non-profit professional organization, also plays a role in this development as it aligns with its mission to address the gaps in the learning and practice of cryptography in Nigeria. Crevatal will also be partnering with the project to ensure the success of the project.

The partnership with the CDIN is very strategic considering the perfect alignment of this project with the just-concluded “Campus Blockchain Development Project (CBDP)” with its pilot phase in the National Campus Blockchain Hackathon event chaired by the Director-General of NITDA and the launching of the Blockchain Industry Association of Nigeria.

 

CDIN happens to play critical roles in the Nigerian blockchain and digital assets ecosystem with its network of partners and stakeholders which have been driving awareness, education, policy advocacy, industry dialogue and collaboration among relevant stakeholders in order to collectively unlock hidden potentials, create job opportunities, open new business horizons and enable economic transformation while discouraging criminal activities in the Nigerian Blockchain/Cryptocurrency ecosystem.

 

According to the president of CDIN (Fadele Adeolu), the “500 Ethereum Developer’s initiative” by Bloceducare is highly commendable and will go a long way to complement similar efforts and programmes being undertaken by other stakeholders in the space and agencies of government like NITDA and the Ministry of Communication and Digital Economy.

Finally, he calls on these strategic stakeholders, who have always been the secrets behind the development in the ecosystem to join forces with this project for the progress of the ecosystem and the nation at large.

The project is still open to sponsors in various categories such as media partners, branding, and developer participation.

 

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The Bank of Canada Plans To Launch Its Own Digital Currency

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Since the future of money has come, the Bank of Canada considers launching a proprietary digital currency. This is contained in the presentation entitled “Central Bank Money: The Next Generation,” which was prepared by Stephen Murchison, an adviser to Governor Poloz, who shoulders the task of leading Canada’s digital currency research. The idea of developing their digital coin is to fight the threat associated with cryptocurrency and also to garner information on how Canadians spend their money.

 

According to the report, Canada is ready to take the lead in launching their cryptocurrency to modernize financial services. In this regard, the bank has released a white paper on the merits of creating a digital currency. The presentation, which was prepared for Governor Stephen Poloz and the board of directors of the bank, offered all the possible details about how the bank plans on developing the digital currency. It outlined over a dozen benefits the bank will get from launching its digital currency, which would be available, coexisting alongside coins and paper money before eventually replacing them.

 

Following the contents of the presentation notes the report, Canada needs to innovate to stay in the game, and thus, a digital currency would provide the benefits of a bank-owned asset as well as all the convenience and security of wireless electronic payments.

 

However, the presentation notes that digital currency presents a risk to stable, low-cost funding for banks.

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Another firm, Booking.com has abandoned the Libra Project

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Booking.com join the list of firms that has pulled out of the Libra Association.

The departure of the leading online travel firm from the Libra Association reduces the membership to just 21 members.

Facebook’s foray into the cryptocurrency industry has been experiencing difficulties as governments warn of the consequences of the global financial system it intends to create via Libra.

Few months ago, Booking.com confirmed to be a founding member of the Libra Association alongside others like PayPal, MasterCard that have already pulled out from the Association.

Booking Holdings CEO Glenn Fogel when he newly became the Chief Executive Officer of the firm behind several travel focus businesses such as agoda.com, booking.com, kayak etc was expressed his opinion on the future of cryptocurrency.

According to him, he said, he believes currencies with blockchain base will continue to surface and may gain acceptance globally.

Earlier few days ago, MasterCard and Visa revealed they would be departing the Facebook’s project. Regulatory pressure most especially from the US has been on the increase recently and this could be attributed to the growing list of firms abandoning the Libra Project.

Senator Sherrod Brown has said Big Tech shouldn’t be given power over public infrastructure like the financial system.

US Treasury Secretary, believes Libra could be used to finance terrorism.

The co-founder of Libra, David Marcus has already come forth to testify of the intention of Libra to create a global financial system while complying with regulatory requirements.

Co-founder of Libra, David Marcus said spoken on the fate of Libra as firms exit the Association. According to him, “I would caution against reading the fate of Libra into this update.”

He went further saying, “Change of this magnitude is hard. You know you’re onto something when this much pressure builds up.”

CEO of Facebook, Mark Zuckerberg has been slated to testify before House of Representatives Financial Services Committee on the 23rd of October

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