Common questions for an uncommon industry
Is it legal to accept Bitcoin?
Can I pay my taxes with Bitcoin?
Can I exchange or sell bitcoin for cash to my customers?
In order to exchange bitcoin for local currency Canadian businesses are required to register as a money service business (MSB) with Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Complete the pre-registration form here.
New York State has the most restrictive set of virtual currency regulations. The BitLicense is a comprehensive set of rules governing all New York State residents and business.
“The regulations are limited to activities involving the state of New York or a New York resident. People residing in, located in, having a place of business in, or conducting business in the State of New York count as New York Residents under these regulations.”
Section 200.3 of the NYSDFS BitLicense clearly exempts merchants who wish to accept bitcoin and consumers who wish to use it.
Section 200.3 License
(c) Exemption from licensing requirements. The following Persons are exempt from the licensing
requirements otherwise applicable under this Part:
(2) merchants and consumers that utilize Virtual Currency solely for the purchase or sale of goods or
services or for investment purposes.
What do I do if I sell products that are priced less than one Bitcoin?
A single Bitcoin can be divided to 8 decimal points. “0 .00000001” – A dollar can be divided to 2 decimal points “0.01”
This make Bitcoin perfect for micro-payments otherwise known as “Tipping”. Bitcoin can be used to tip bloggers, online forums, Reddit, musicians, Twitter, YouTube and anywhere people want to be shown appreciation. Let us help you get set up to accept bitcoin tips.
Can I pay my staff with Bitcoin?
In the event of a refund, and if the value of Bitcoin has changed since the original transaction, do I refund the same Bitcoin amount?
Can I refund Bitcoin the same way I refund cash?
Do I pay merchant transaction fees?
Do I require a special license to accept or handle Bitcoin?
Can Bitcoin be converted to regular currency like USD or CAD?
What are key considerations when adding Bitcoin as payment method?
Is the BITCOIN PUBLIC KEY and PRIVATE KEY like my house key?
No. PUBLIC and PRIVATE KEYS are simply long strings of numbers and letters. The PUBLIC KEY – which you can openly share – is like a bank account number. The PRIVATE KEY is also a long string of numbers and letters and would be akin to a secret password. Anyone who knows the secret passord can access your “bank account”. From anywhere.
Is my bitcoin insured against theft or loss?
No. With bitcoin, your are the bank. Bitcoin is like cash. With cash, if someone pulls it out of your pocket or you forget where you put it, it’s lost. If someone finds your PRIVATE KEY or hacks your computer or you forget where you stored your PRIVATE KEY, your bitcoin is lost.
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