Cryptocurrency payment system. Legalization

The growth of the cryptocurrency market is beginning to actively attract participants in the traditional business. Now many entrepreneurs are considering or have already implemented various cryptocurrency payment system on their own online trading platforms in order to receive payments for goods or services in cryptocurrency.

At the same time, there are a number of pitfalls associated with the operation of such services, as well as their legalization and taxation of income received. In this article, we will look at the pros and cons of crypto payment systems (crypto acquiring) for business. Let’s consider alternative proposals for the creation and legalization of our own payment crypto-gateway and its legal registration.

The world does not stand still and the one who is armed with knowledge, quickly responds to the challenges of our time, will definitely find success and prosperity. So, let’s figure it out.

Payment system for cryptocurrencies

Payment systems that operate with cryptocurrencies allow users to transact and send money using digital assets such as bitcoin, ethereum and others. They usually offer faster transactions for which they charge a fixed percentage of fees, as well as additional features like anonymity. As a rule, they are integrated through exchange services.

However, the use of cryptocurrency payment systems can also be associated with certain risks, such as cryptocurrency price volatility and a high risk of fraud opportunities. As always, it is important to do more research and carefully read the terms and security of each particular payment system before using it.

It is especially important to pay attention to the legalization of the payment service – crypto acquiring, since most often they are not formalized legally guided by the “dark” side of the crypt, which is absolutely unacceptable for a legal online business.

Crypto acquiring for business

Given the global boom in crypto, crypto acquiring payment acceptance providers are actively appearing on the market and also quickly disappearing. What factors contribute to this process and what should an entrepreneur pay attention to when choosing a crypto service for their marketplace.

So, crypto acquiring or accepting payments in cryptocurrency can become the object of various fraudulent schemes. For example:

1. Fake transactions: Fraudsters can create fake transactions to gain access to cryptocurrencies or services without providing real payment. This may include creating fake wallets or using stolen credit cards to make purchases.
2. Identity theft: Fraudsters may attempt to gain access to the identities of users of crypto acquiring platforms in order to use that data to commit fraudulent activities, including the theft of cryptocurrencies. Cases are gaining momentum after connecting crypto acquiring.
3. Fake Platforms: Fraudsters can create fake crypto acquiring platforms that look authentic in order to gain access to cryptocurrencies or users’ sensitive information. As a rule, the site does not contain information about the legal entity and any permits.

Based on the above, not one crypto acquiring provider provides a guarantee of protection against fraud, which is unacceptable for a legal business. In addition, many cryptosystems disappear after scrolling and appropriating a number of funds from marketplace owners; it is impossible to find them without the involvement of law enforcement agencies.

Cryptocurrency payment Gateway

At the same time, how can an entrepreneur set up and legalize accepting payments in cryptocurrency on his website? To protect against fraud in crypto acquiring, it is recommended to create your own payment crypto-gateway, for a specific online marketplace, through direct integration into the network.

Yes, to the client under the selected product on the marketplace, selects the option “payment in cryptocurrency”, he is asked to choose the BTC, ETH, USDT cryptocurrencies, and then the crypto gateway generates an invoice for payment in the selected cryptocurrency. The client makes a payment and the money goes to a wallet, for example, created by an entrepreneur in MetaMask (this is a wallet for storing and transiting cryptocurrency, it is not an exchange one)

The transfer of received crypto funds into fiat currencies is carried out manually.

This kind of crypto-gateway has the following advantages:

• no acquiring fees
• guarantee that the acceptance of payments through the crypto-gateway will work as long as the crypto-network exists
• control of all transactions by the entrepreneur (i.e. the owner of the marketplace)

To create an individual turnkey payment service, please apply by email: info@sion-ip.com

Legalization of the cryptocurrency payment gateway

Legalization of a cryptocurrency gateway is a process in which government agencies take measures to regulate and supervise transactions with cryptocurrencies through gateways that allow receiving, exchanging cryptocurrencies for fiat money or vice versa.

Today, approaches to the legalization of cryptocurrency gateways differ in different countries. Some countries and regions, such as the United States, Japan, Switzerland, and some countries in the European Union, have developed specific laws and regulatory frameworks (licensing requirements) to regulate cryptocurrency gateways. These laws often include licensing and registration of platforms, requirements for compliance with customer identification rules, and the prevention of money laundering and terrorist financing.

Other countries, however, may take a tougher stance towards cryptocurrencies in general, and therefore have not developed specific laws or regulatory frameworks for crypto-currency gateways. In such cases, the operation of cryptocurrency gateways may be limited or prohibited.

Legalizing cryptocurrency gateways has its own benefits, such as increasing trust, protecting users from fraud, and complying with anti-money laundering regulations. However, it also requires compliance with strict rules and regulations, which can be difficult for some companies.

Thus, the legalization of a cryptocurrency gateway depends on the legislative regulation and approach of each country or region to cryptocurrencies.
To check the possibility of legalizing crypto payments in a specific country, please contact us by email: info@sion-ip.com

Legalization of income from cryptocurrency

Of course, when it comes to legal business, many entrepreneurs do not at all consider cryptocurrency as a payment instrument. At the same time, the legislation of many countries has already defined crypto as a payment instrument and/or investment. And in some countries of the world, operations with crypto are prohibited, while in other countries, such as Portugal, citizens are exempt from taxes on crypto. At the same time, the state does not prohibit the use of the crypt, but it does not guarantee compensation for lost funds.

Cryptocurrency can legally be calculated in the Caribbean, Vanuatu, Sweden, Australia, in most EU countries, the USA, Japan and other states. In accordance with this, special% rates are set for generating income in the crypt. If we are talking about the design of a payment crypto-gateway according to the legislation of the EU countries, the Cryptocurrency is taxed in all countries – often there is a capital gains levy, and the rate depends on the legislation of each sovereign state

Consequently, the payment of taxes for the acquisition, exchange, sale, storage of cryptocurrency is determined in each country separately where the crypt is legally defined. To select the optimal jurisdiction for the legalization of a crypto gateway for business, we recommend contacting our blockchain lawyers.

Cryptocurrency Business Opportunities

Cryptocurrency offers a number of potential business opportunities in the field of marketing. Here are a few of them:

1. International payments: Cryptocurrency allows for fast and low-cost international transactions without intermediaries. This can help expand the geography of your business and attract customers from all over the world. A very reliable tool if you have your own payment crypto-gateway.

2. Cryptocurrency rewards: You can use various cryptocurrency reward programs or tokens to reward customer loyalty or attract new ones. This can encourage customer activity and participation in your business. Very popular with the release of unique NFT cards for a specific project or promotion.

3. ICO (Initial Coin Offering): If you have an innovative business idea, you can conduct your ICO to attract investments by issuing your own tokens. This can be a way to fund your project and bring attention to your company. Can be connected to your own crypto gateway.

4. Secure transactions, especially in the use of its own crypto-gateway: Blockchain technology, on which the cryptocurrency is based, ensures the transparency and security of transactions. This can be an advantage for your customers who value privacy and the protection of their data.

However, it is important to remember that the adoption of cryptocurrencies in business requires appropriate security measures and a legal framework. It is recommended to conduct sufficient research and consultation with specialists before introducing cryptocurrency into your business. For detailed advice, please email us: info@sion-ip.com