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Paid in Bitcoin?
Plus: Tornado Cash sanctions + How to receive crypto
🎙️ Did You Know? On this day in 1921, Charlie Chaplin released The Kid, his first full-length feature film, starring himself and a young Jackie Coogan. The silent classic blended comedy with heartfelt social commentary, proving that you didn't need dialogue to make a powerful statement.
Now imagine if Chaplin were making movies today, would “The Crypto Kid” (more like the crypto bro) be a satirical take on meme coins and get-rich-quick schemes? Or maybe Modern Times 2.0, featuring an influencer lost in the world of AI, podcasts, and digital gold? One thing's for sure: he'd still have a lot to say, even without words.
Crypto Paychecks
A Real Option or Just a Headache?
Getting paid in cryptocurrency sounds futuristic, but in reality, how close are we to that future? While direct crypto salaries are challenging due to regulations, payments for international work or personal transactions can be much more feasible.
The following are our honest suggestions, no affiliate links or kickbacks apply.
Understand the U.S. Regulations
👨‍⚖️ The IRS Factor: Crypto is taxed as property, meaning every transaction could trigger capital gains tax.
🏛 Federal Oversight: Agencies like the SEC, CFTC, and FinCEN have different classifications for crypto, making compliance a legal maze.
đź’Ľ Employer Challenges: U.S. companies must comply with payroll laws, making direct crypto salaries complex. Instead, some companies offer crypto bonuses or contractor payments.
How to Use Crypto for Payments
đź’¸ Freelance & International Work: Many freelancers accept crypto to bypass currency exchange issues and transaction delays.
đź’° Hybrid Pay: Some employees opt for partial crypto payments through third-party platforms that convert salaries into digital assets.
đź“Ą Personal Transactions: Peer-to-peer payments via apps like Cash App or Coinbase make it easier to receive crypto for services or gigs.
While getting paid entirely in crypto is still a regulatory gray area, the key is understanding both the perks and the legal considerations, so you don’t end up with more tax headaches than actual earnings.
Zoltan Vardai
A U.S. court has overturned sanctions against Tornado Cash, a cryptocurrency mixing protocol, in a decision that may encourage innovation-friendly regulations for privacy-preserving technologies. The sanctions, imposed by the U.S. Treasury's OFAC in 2022, accused Tornado Cash of facilitating money laundering for the North Korean Lazarus Group, linked to over $455 million in stolen assets.
The Jan. 21 ruling by the U.S. District Court for the Western District of Texas found that Tornado Cash’s immutable smart contracts are not "property" under OFAC’s authority, deeming the sanctions an overreach. Despite this, developer Alexey Pertsev remains in custody after being sentenced in 2024 to over five years for laundering $1.2 billion in illicit funds through the platform.
The decision has raised questions about balancing privacy and compliance in blockchain technologies. Advocates argue for privacy-preserving features that meet legal standards, while the case highlights the challenges for developers in preventing misuse of decentralized tools. Industry observers are now closely watching for developments in Pertsev’s legal proceedings.
How to receive crypto: A step-by-step guide
Step 1: Choose a Cryptocurrency Wallet
To receive cryptocurrencies, you'll need a wallet. There are two main types:
Hot Wallets: These are online wallets that are connected to the internet, making it easy to access and use your cryptocurrencies. Examples include Coinbase, Binance, and Gemini.
Cold Wallets: These are offline wallets that store your cryptocurrencies on a physical device, offering higher security. Examples include Ledger and Trezor.
Step 2: Set Up Your Wallet
After creating your account, you'll need to set up your wallet:
Secure Your Wallet: Set up security measures such as two-factor authentication (2FA) and strong passwords.
Backup Your Wallet: Make sure to backup your wallet's recovery phrase (a series of words) and store it in a safe place.
Step 3: Receive Cryptocurrencies
To receive cryptocurrencies, you'll need to share your wallet's address with the sender:
Get Your Wallet Address: Your wallet will provide you with a unique address (a long string of letters and numbers).
Step 4: Declare Cryptocurrency Income
In the US, you are required to declare any income earned from cryptocurrencies on your tax return.
Track Your Transactions: Keep a record of all your cryptocurrency transactions, including dates, amounts, and values in USD at the time of the transaction.
Fill Out Form 8949: Report your cryptocurrency transactions on Form 8949 and include it with your tax return.
Remember to keep up with the latest regulations and guidelines from the IRS regarding cryptocurrencies.
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