Are crypto payments legal in the United States?

Accept cryptocurrency payments  

The cryptocurrency market has been growing in popularity around the world for the past decade. Depending on where you are in the world, there are different laws and regulations that should be followed while dealing with digital assets. Countries like China, Qatar, and Bangladesh have issued a direct ban on cryptocurrencies. Among the countries where crypto is completely legal are Germany, Canada, the Netherlands, and El Salvador. 

The United States occupies a middle ground when it comes to this. 36.5 million Americans, or 16% of the total population, report using, investing in, or trading cryptocurrencies. For cryptocurrency users in the U.S., it’s essential to understand how crypto is regulated, what laws apply to its use, and how it’s taxed.

  • Payments made with cryptocurrencies are permitted in the United States, and FinCEN, the SEC, and the CFTC oversee their regulations.
  • Tax-wise, cryptocurrency is recognized as property, and cryptocurrencies are treated like property. 
  • Potential taxes that could apply to cryptocurrency assets are income tax and capital gains tax.

Can I accept crypto payments in the US?

In the United States, cryptocurrency exchanges are permitted and regulated by the Bank Secrecy Act (BSA). In addition, parts of the expanding cryptocurrency market are regulated by federal organizations, including the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).

Can I accept crypto payments in the U.S.?

The United States Congress passed a law in 2021 that makes the first mention of cryptocurrencies. It is known as the Jobs and Infrastructure Investment Act. While the majority of the law is unrelated to cryptocurrencies, one section mandates that centralized cryptocurrency exchanges send Form 1099-B to each user and the IRS. This implies that US-based cryptocurrency exchanges must track and report to the IRS the gains and losses of their users for tax purposes. 

Other than this law and the BSA, cryptocurrency or virtual money regulations differ from state to state. The majority of these rules are applicable to the crypto exchanges, not individual users. It’s highly likely that the cryptocurrency exchange complies with all applicable regulations if it has permission to operate in your state.

Tax on crypto assets in the US

Now that we’ve established that it’s legal to accept cryptocurrency payments in the U.S., let’s figure out how crypto assets are reported on tax forms. The IRS rules on cryptocurrency tax are constantly changing. The most important aspect to understand is that, in terms of taxes, cryptocurrencies are treated like property. So there are two potential taxes that could apply: either income tax or capital gains tax. 

Tax on crypto assets in the US

Short-term capital gains and cryptocurrency income are subject to a tax of up to 37%, while long-term capital gains are subject to a tax of 0% to 20%. Your income, the particular transaction, and the length of time you’ve owned the asset all play a role in how much tax you’ll have to pay on cryptocurrency in the USA.

To make the process simpler, a lot of exchanges and wallets provide Form 1040 Schedule D as your crypto tax form to reconcile your capital gains and losses.

How can I accept crypto payments?

You can receive crypto payments and donations by registering for a free NOWPayments account. There is a wide range of tools that this non-custodial crypto payment gateway offers, including:

  • Plugins: start accepting crypto payments in online stores with payment gateway integration into major CMS solutions like WooCommerce, Magento 2, Zencart, OpenCart, and WHMCS.
  • Cryptocurrency API: enables custom integration of a cryptocurrency payment service into your website, platform, or mobile app. 
  • Payment linksBy offering personalized payment links, you can help your customers pay their invoices in fewer steps. 
  • Subscriptions:  easily accept recurring payments in cryptocurrency.
  • Fiat withdrawals: withdraw funds to your bank account with fiat conversions. 
  • Mass payouts: send several crypto transactions to multiple wallets without having to manually make each payment. 

How can I accept crypto payments?

To begin accepting cryptocurrency payments, you’ll need a wallet and your NOWPayments account. Create a dedicated wallet where you can receive payments, or you can use multi-asset wallets.

Please note that NOWPayments doesn’t work with businesses registered in the US!

To start accepting payments:

  1. Visit the official NOWPayments website to register. Enter your email address and password. 
  2. Enter your crypto wallet address. 
  3. After that, you can generate and use the crypto API key.
  4. Under the “Settings” tab, you will need to pick your preferred method of receiving cryptocurrency payments. All assets will be automatically transferred to the chosen wallet. 

There are currently more than 150 cryptocurrencies available on the platform. You can use advanced analytics to track all payments and invoice your clients. You can also choose the currency that fits your needs and still accept all of the other available coins with automatic conversions.


The purchase and possession of cryptocurrency are legal in every state of the U.S., which means you can accept crypto payments. Make sure that you know the specific laws that apply in your state. It’s also important to properly report your cryptocurrency transactions on tax forms. You can quickly begin accepting cryptocurrency payments from your clients and customers with NOWPayments.

Accept cryptocurrency payments

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