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 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.
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 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 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.
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
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.
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.
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.
The Bank of Canada Plans To Launch Its Own Digital Currency
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.
Another firm, Booking.com has abandoned the Libra Project
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
An open-source map to the Pan-African Blockchain Ecosystem
Africa blockchain cryptocurrency industry stakeholders have created a map of organizations in the entire African continent.
The map which was made open source currently has data of more than 100 Africa firms building on the blockchain or having businesses that interacts with the industry.
The African continent has been seeing growth in the industry steadily. Based on a data from a report made by Emerge, the numbers of African blockchain focused firms were less two-scores.
However, currently according to data already collected all over the continent which can be seen on the Open Source Map, there has been a tremendous growth in the numbers of firms building blockchain solutions in the continent. The rate of growth yearly since 2017 is over 120%.
The compilation of such data required hundreds of man hours however, representatives from various firms in the industry congregated to collate and arrange the data. The representatives were from CryotoTVPlus, Africa Blockchain Alliance, African Digital Asset Framework, Binance Labs, BitcoinKE, EOS Nairobi, Raise and Microtraction.
From payment gamification, consultancy, media healthcare etc, there are several projects or firms solving problems with the technology.
CEO of CryptoTVPlus, Tony Emeka speaking on the initiative said:
“As one of the largest media firms focused on the industry, we understand the impact visibility plays in the success of a firm”.
He went further saying;
“This map now ensures players in the industry get the right exposure they deserve as they continue doing what they do best, innovating.”
Anyone Can Update the Map
The incredible pace the blockchain technology is growing is unprecedented. As dynamic as it is, daily new challenges facing our social, political and economic environment are showing forth and the blockchain could help provide answers to some of these questions.
The emergence of a problem creates room for a solution, the joy of an entrepreneur, solving problems. These ultimately could create new firms all over the continent.
As an open source map, anyone can update the map with newer data of existing or new blockchain firms in their country or the African continent at large.
The Open Source Map can be found here, the data are found in a Google Sheet, contributors are admonished to keep the sheet clean.
The world is moving fast, Africans cannot be left behind. In the world of global competition, developing local solutions that are carefully tailored to local needs are crucial to our survival, growth and development as a continent.
Naijacrypto.com Launches the First Ever Cryptocurrency trading competition module in Nigeria
Naijacrypto, in its vision to create outstanding solutions for cryptocurrency traders, is excited to announce the launch of its trading competition module in Nigeria.
Naijacrypto is a highly secure peer-to-peer cryptocurrency exchange. It owns both web and app-based platforms that enables users to conduct trades of some major cryptocurrencies in the market.
This module allows both experienced, upcoming and beginner traders to trade various cryptocurrencies using virtual money and win prizes for good performances.
In this competition:
- A trader can trade up to 30 cryptocurrencies including Bitcoin, Ethereum and Monero.
- Trading is with Demo money but the prizes are real!
- There is a live feed given for every crypto currency the trader wishes to trade
- Traders can view a leaderboard and see where they stand in the competition
- Traders can test their trading skills without pressure of using real money.
- Any trader can pick a competition that suits them.
- Competitions run daily, weekly or on a monthly basis.
Chat box available so competitors can chat and learn among themselves
All rewards are paid into your Naijacrypto account. Account holders will be able to claim their prizes directly to their wallet once competition is over.
Naijacrypto believes that this competition module is an opportunity for those trying to learn cryptocurrency trading to involve themselves in trade scenarios without the pressure of using real money. The interaction between beginner traders and pros can make the action of pros rub off on the beginners.
The trading competition module is now live on the naijacrypto website. The first competition is free to enter with the winner being rewarded with
100,000 naira for first place,
60,000 naira for second place and
40,000 naira for third place.
We are always open to partner with individuals and organizations who wish to organize or sponsor their own competitions on the platform.
To participate in the first free competitions or any subsequent competitions, simply create an account on www.naijacrypto.com or download the naijacrypto app on the google play store. Please note that there would be deferring competitions on the module with deferring roles.
News5 days ago
Nile University has partnered with Cryptography Development Initiative in Nigeria (CDIN)
Altcoin News5 days ago
$36.7 Million Worth of BNB Destroyed as Binance Completes its 9th Quarterly Burn
Bitcoin News3 days ago
Antivirus Firm, ESET Gives warning over Trojanized Tor Browser Targeting Bitcoin Users
Exchange18 hours ago
Bitfinex Seeks Recover $800million as it files to US Court to subpoena Crypto Capital Executive