Lee Murphy, owner at Accountancy Software Pandle:
“By their very nature, cryptocurrencies are encrypted, but this doesn’t make them any more secure than dealing in normal currencies, as many people may think. There is no regulation or policing that can investigate theft for you, so it’s important to get advice if you’re looking to to trade in or receive payment – cryptocurrencies are not the exception to the rule when it comes to monetary scams, and should not be treated as such. Bitcoin payments are also irreversible, and create an extra level of exposure that people may not be aware of. It’s important to act with caution and only do business with people and companies you know and trust.”
“If you do have a client who wants to pay you in Bitcoin, move ahead only if you have the appropriate systems in place, and do not consider the payment as automatic. Exchange rates with cryptocurrencies are incredibly volatile, so making or accepting payment this way can cause a loss when converting back to your standard currency.”
“Finally, despite what many people think, although cryptocurrencies are not official currencies, you still must adhere to tax and regulatory laws that apply to your business. Avoid falling victim to this pitfall and do your homework on how this will affect your business. If in doubt, consult advice from your accountant.”
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