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Here’s Why You Will Not Get Paid From Your Job In Crypto

Cryptocurrency was designed to eventually replace traditional fiat currency, but there could be one vital part that is stopping this from happening. Your employer cannot currently pay you in cryptocurrency. Whilst this of course would likely change if virtual currencies started becoming more mainstream, but, at present, this is simply not the case.

Here are just some of the reasons why…

Some laws don’t allow it…

Physical Bitcoins on Black Background

This is particularly apparent in the US, stating in the Fair Labor Standards Act (FLSA) that employers must meet at least a portion of the minimum-wage requirements by paying workers in cash or cheques. This includes no cryptocurrencies. However; outside of these requirements, other forms of payment can be agreed, which could mean that the rest of the wages could be made up out of cryptocurrencies.

They may be deemed securities…

The Securities and Exchange Commission have released a statement that served to remind people that any investments that are associated with them crosses into other geographic boundaries without the owners’ knowing about it, increasing the risk.

The SEC also have the power to decide whether certain cryptocurrencies are designated as securities, which would mean that employers would then have to comply with any additional laws surrounding securities and the aforementioned wage related rules.

Some employers could end up feeling wary…

Tax on Wooden Block Letters Comic Style

Cryptocurrencies are known for being incredibly volatile, which could leave some employers feeling very nervous at the thought of having to pay their employees in this way. Combine this with the fact that they are not accepted everywhere, and it is easy to see why some employers feel on edge.

The tax implications vary in different countries…

Taxes work differently in different countries, meaning this could become a problem should an employer hire someone who works in one country, but pays taxes in another. At the moment, in the majority of countries, all earnings have to be reported in fiat currency as well, even if they have been earned in a virtual currency.

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Frances is a writer for Crypto Daily, and she is responsible for bringing you the latest news on everything that is related to the Crypto world. She has a keen interest in Cryptocurrencies, and has many years of experience writing in all different roles. She is incredibly passionate about writing, and this combined with her interest into the finance, and virtual currency sector means that you are kept up to date with all of the latest news and information regarding all cryptocurrencies.