Accepting Cryptocurrency in Business: A Legal Perspective from Federal and Missouri State Laws

With the rise of digital assets, many businesses are considering the benefits of accepting cryptocurrencies. In this article, we explore the legal implications of such a move, focusing on both federal and Missouri state laws.

Accepting Cryptocurrency: The Federal Perspective

At the federal level, it is legal for businesses to accept cryptocurrencies such as Bitcoin as a form of payment. Key aspects that businesses should consider include:

- Tax implications: The IRS considers cryptocurrencies as property for tax purposes. Therefore, when a business accepts cryptocurrency as payment, it's treated as income at the fair market value of the cryptocurrency at the time of the transaction.

- Anti-Money Laundering (AML) Regulations: Businesses that accept significant cryptocurrency payments may need to meet specific regulatory requirements to prevent money laundering. This could include collecting identifying information about customers and reporting large transactions.

- Consumer Protection: Businesses need to ensure they meet Federal Trade Commission (FTC) requirements for clear and honest advertising and pricing, particularly when pricing goods or services in cryptocurrency.

Missouri State Laws on Accepting Cryptocurrency

While Missouri has not enacted specific legislation addressing cryptocurrencies, businesses should consider the following:

- Sales Tax: Like any other transaction, sales involving cryptocurrencies are subject to the same sales tax rules in Missouri.

- Consumer Protection: Missouri law requires businesses to adhere to consumer protection laws, which means the goods or services provided must meet the terms of the sale, even when sold for cryptocurrency.

Legal Considerations for Accepting Cryptocurrency

Businesses should also consider the following legal aspects when accepting cryptocurrency:

- Volatility: Cryptocurrency prices can be highly volatile. Businesses should consider how to price their goods or services and whether they will hold or convert cryptocurrency once received.

- Privacy and Security: Cryptocurrency transactions can provide more privacy than traditional payment methods. However, businesses need to ensure they are safeguarding customer data and meeting regulatory obligations for record-keeping.

- Transactional Issues: Refunds can be more complex with cryptocurrencies. Businesses need to establish clear policies regarding returns and refunds when dealing with cryptocurrency.


While accepting cryptocurrency can provide businesses with advantages such as access to a global market and reduced transaction fees, it also comes with unique legal and financial considerations. As the legal landscape of cryptocurrency continues to evolve, it's crucial for businesses to stay informed and consult with a legal professional when incorporating digital assets into their operations.