Once relegated to online forums and early adopters, cryptocurrency has become a bona fide asset class—and an increasingly popular payment method. Nearly 75% of US retailers polled plan to accept crypto as payment by around the end of 2023, according to a Deloitte survey.

Why accept crypto payments? For some businesses, it can be a way to reach new customers and enjoy benefits like cheaper transaction fees; for others, drawbacks like the complexity around legal and tax rules as well as evolving regulatory requirements mean it may not be worth it.

Is it right for your business? Here’s what to know, and what to ask yourself, as you consider whether crypto payments are a good fit.

Pros and cons of accepting crypto as payment

Taking crypto payments may affect your specific business in several ways, and you’ll have to weigh the potential benefits against the drawbacks.


Reach new customers and regions: By accepting crypto, you may attract new customers who prefer to pay in this manner and those in regions where traditional payment methods like credit cards aren’t widely used or available.

Cheaper, faster transactions: Generally, crypto transactions are processed faster and cost less in fees compared to traditional payment methods like credit cards.

Innovative reputation: Particularly for businesses that cater to consumers in technology and creative fields, accepting cryptocurrency may give your business a bit of cachet as forward-thinking and cutting-edge.

Chargeback protection: Cryptocurrency transactions are generally irreversible, thanks to the design of the blockchain technologies that many of them are built upon. This can provide some protection against fraudulent chargebacks.


Volatility: The cryptocurrency market in general can experience big swings, and the value of a specific cryptocurrency payment can fluctuate from moment to moment. That can make it difficult to assess cash flow and complicate financial operations.

The need to find a secure, trustable payments processor: This isn’t necessarily a “con” per se, but note that to accept crypto payments as a business, you’ll likely have to hire a payments-processing provider. Look for strong security practices, transparent transaction fees, seamless integration with your services, competitive conversion rates, and speedy payouts.

Quickly evolving regulatory, legal, and tax considerations: For this, we need a whole section!

Legal and tax implications

Detailed financial record-keeping is important—and often complex—for businesses no matter the currency in question. But taking payment in crypto can add several layers of considerations that may or may not be worth it for your business.

Varying tax laws across jurisdictions: Both legal and tax rules around crypto can differ between different states or countries, and sometimes these change quickly. You’ll have to stay aware of the specific regulations to ensure your business stays in compliance on issues like sales tax. (A tax pro can help here.)

Consumer protection and other laws: Like taxes, general laws around crypto payments may vary by region—including consumer protection rules that may require certain disclosures, as well as liability for defective products. Other legal considerations include, for example, contract laws around resolving disputes that involve crypto transactions.

Taxable events: In some localities, it’s considered a taxable event when you convert the crypto your customers pay you into fiat currency. And if you choose to sell or exchange the crypto, you may also be subject to capital gains tax at that time if the value has increased since you received the crypto payment.

Possible anti-money laundering (AML) and know-your-customer (KYC) requirements: Some jurisdictions require businesses to prove due diligence to avoid facilitating money launderers and other potential bad actors. In the case of KYC, some localities require businesses to collect pieces of identifying information about the customer paying with crypto—which is antithetical to the “anonymous” nature of crypto.

Questions to ask yourself

If you’re unsure about whether to start accepting crypto payments, consider these questions:

●  Am I comfortable with my understanding of how cryptocurrencies work, as well as the potential pros and cons of my business accepting them?
●  Can my business—and I—handle the volatility in the cryptocurrency market?
●  How will I convert crypto payments into fiat currency? Have I found a provider who can process crypto payments securely, and will they give me instant payouts?
●  Am I familiar with the legal and tax implications of accepting crypto payments? Have I found a professional who can help me stay in compliance across jurisdictions?
●  Am I comfortable with reassessing decisions as the regulatory, legal, tax, and other spaces evolve as it relates to cryptocurrency?