The main things a business needs to consider about accepting digital payments via cryptocurrency are as follows:
- If you accept Bitcoin or another currency on the site as a means of investing some of your assets in high risk, high growth assets, make sure you have considered the volatility risks. As long as these payments are below a few percentage points from your revenue, this risk is rather low. If a considerable portion of your revenue is in cryptocurrency, consider brokerage services in order to hedge against those risks.
- Accepting cryptocurrency may be a good tool for attracting new customers. However, depending on your product, you may need to verify the identity of your customers. Various products or services, usually associated with investment or financial products, require processes called KYC (Know Your Customer) or AML (anti-money laundering). Consult with a licensed attorney specializing in cryptocurrency transations.
- Beware of liquidity issues. You will need to exchange the funds you accepted in cryptocurrency into fiat money in order to spend in on a variety of products, services or employee compensation payments. You can, however, offer to pay bonuses to your employees in cryptocurrency should they be inclined to receive them.
- Make sure you consulted a tax attorney. Depending on your country of operation, you may need to pay various taxes each time you accept or exchange a cryptocurrency transfer. In some countries, cryptocurrency is considered an asset and thus cryptocurrency transfers are taxed as transfers of assets.
- Beware of accepting cryptocurrencies that may be associated with unlawful activities or scams. This may tarnish your reputation. You need to check each cryptocurrency, the company behind it, their vision, rating on various ICO rating sites and perform a google news search on the above to establish the validity and trustworthiness of the currency.