January 17, 2019

US W-2 Employees Can Now Get Paid in BTC

Cryptocurrency payroll and HR company Bitwage has announced a rollout of new payment tools for businesses executives claim “closes the loop” in BTC salaries for W-2 employees in the US.

Paxful Completes Successful Trial

Through a partnership with Texas-based HR firm Simply Efficient HR, Bitwage now offers client businesses a way to offer salaries in BTC and Ether to regular payroll employees.

The move is significant for Bitwage’s US customer base, as it means companies can now pay employees with support for W-2 salary reporting obligations. Form W-2 refers to a document US corporations use to report employees salary payments to tax agency the Internal Revenue Service (IRS).

According to a blog post January 16, Bitwage has been testing its new feature in beta mode since November. So far, it has one guinea pig – P2P cryptocurrency trading platform Paxful.

“As a company that earns 100% of revenue in BTC, we are always looking for service providers who will accept digital currency. Paxful has a significantly sized team in the states and we need to pay them as employees on payroll, not as contractors,” Paxful controller Hayel Abbassi commented.

…Paxful simply sends BTC to an address, and our employees receive net checks with the proper federal and state taxes withheld.

Adoption Fuel?

The issuance of the blog post also heralds the transfer out of beta, Bitwage says, while it remains unknown if any specific businesses are already lined up to use it.

The option to pay employees in cryptocurrency – whether in the form of their full salary or as a portion of it – has existed via Bitwage since 2014. In 2016, the company expanded its services beyond the US into Europe.

More recently meanwhile, commentators have begun asking whether retail adoption of BTC might hinge on more people choosing to receive their earnings in the cryptocurrency.

Leading the argument was Francis Pouliot, CEO of an umbrella company which includes Bylls.com, a service allowing Canadian businesses to pay their bills in BTC.

“Merchant adoption won’t take off until people get paid in BTC,” he wrote on Twitter at the time.

What do you think about BTC salaries? Let us know in the comments below!

Images courtesy of Shutterstock

Published at Thu, 17 Jan 2019 20:00:55 +0000

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India: Zebpay Refutes Reports Minister Said Bitcoin is Illegal

India is the scene of conflicting reports over bitcoin’s legality following suspicious statements from the government.

Minister: Virtual Currencies Lack ‘Regulatory Approval’

On Tuesday, Minister of State for Finance Arjun Ram Meghwal said that use of virtual currencies “could subject the users to unintentional breaches of anti-money laundering and combating the financing of terrorism laws.”

On the creation of virtual currencies, the bank spokesman added that “No regulatory approval, registration or authorization is stated to have been obtained by the entities concerned for carrying on such activities.”

While not explicitly stating that virtual currencies such as bitcoin were therefore not legally sanctioned, reports suggested that such a message was implied.

The local bitcoin industry was quick to dispute such conclusions. Indian exchange Zebpay published a dedicated response to the episode in which it stated its belief that bitcoin in India “is not illegal.”

A blog post reads:

Nothing has changed regarding bitcoin’s legal status in India this week. In our opinion, bitcoin is not illegal. bitcoin is legal under all existing laws. It’s business as usual at all Indian bitcoin exchanges, including Zebpay.

Nonetheless, a word of caution accompanied the rebuttal.

“As per media reports, inter-ministerial committee has been setup to study the legality of bitcoins. They will give a response on 20th April 2017,” an update announced.

Bad Actors Give A Bad Name

Recent illicit use of bitcoin by scam actors was widely reported in the media, with Zebpay commenting at the time that such parties posed a persistent problem to uneducated consumers.

A forgiving perspective was also given to the minister, the exchange taking the stance that regulators were trying to “protect” the public.

“A respectable MP raised the issue that bitcoin is a Ponzi scheme. Certain sections of the media reported this as if bitcoin has been declared illegal,” it summarized.

Additionally, bitcoin is considered a commodity and falls in the Neutral/Alegal bracket, according to information portal Coin.dance.

India’s bitcoin ecosystem had seen a surge in usage following the country’s sudden currency reforms introduced in November last year.

Zebpay and fellow exchanges witnessed record trading, part of a wave of bitcoin interest, which even saw the market become the second largest on Purse.io’s Amazon discount platform behind the US.

Blockchain innovation is also active locally, with crypto investor Tim Draper in February announcing his return to the Indian market, injecting venture capital through the newly acquired Blume Ventures.

What do you think about India’s current stance on virtual currencies? Let us know in the comments below!

Images courtesy of Shutterstock, Zebpay

The post India: Zebpay Refutes Reports Minister Said Bitcoin is Illegal appeared first on Bitcoinist.com.