The emergence a few years ago of the first cryptocurrencies, like Bitcoin, generated considerable interest amongst businesses. Many invested in or used these new currencies in transactions. Some, like Expedia, Overstock, Lush, Microsoft, PayPal, UNICEF, Shopify and Subway, jumped on the bandwagon with the acceptance of cryptocurrency payments.
Is your business interested in cryptocurrency payments? Do you need professionals in this field to guide you through the key aspects and risks to avoid? Our experts can help.
What is a cryptocurrency?
A cryptocurrency is a digital asset designed to operate as an exchange medium using robust cryptography to secure financial transactions, control the creation of additional units and verify the transfer of assets. Using blockchain technology, cryptocurrencies allow individuals and businesses to carry out transactions without having recourse to intermediaries such as banks or central institutions. There are currently more than 2,100 different cryptocurrencies, the main ones being: Bitcoin, Ethereum, XRP, Tether, Bitcoin Cash, Litecoin et EOS.
Why should you accept cryptocurrencies?
There are several reasons that could justify your company accepting cryptocurrency payments, in particular, to attract new customers active in this field or just millennials in general.
” 5% to 8% of Quebecers own cryptocurrencies.Source: Icomaking.com
17% of millennials own cryptocurrencies.”
What do I need to do to support cryptocurrency payments?
First and foremost, management must define the purpose of cryptocurrencies for the company. Generally, they will be used for transactional (acceptance of payments) or investment (mining and storage) purposes. There are several technical and tax considerations to be taken into account in this regard.
If the company wants to keep cryptocurrency assets, how will it treat them for tax purposes? How should these assets be managed and what internal controls should be implemented to prevent theft or fraud?
Thanks to our consulting, tax, commodity taxes, internal control and auditing specialists with cryptocurrency expertise, Raymond Chabot Grant Thornton is able to support you in your journey.
Our experts can work on assignments such as:
- training and assisting you in the thought process on the use of cryptocurrencies;
- assisting companies to ensure their compliance with Canadian laws and regulations;
- preparing for and implementing a cryptocurrency audit;
- analyzing and making assumptions about internal controls.