Many entrepreneurs want to incorporate cryptocurrency into their businesses. As you begin building your next venture, you may consider working with it as a form of payment, too. And you may also want to convert your business’ assets to cryptocurrency, because it allows for easy and secure storage.
Yet you might only have experience with traditional forms of capital. And cryptocurrency could feel foreign to you. If you can understand its regulation process, you could make it part of your next venture.
Cryptocurrency does not face the regulation that cash, credit or stock transactions do. By Tennessee law, cryptocurrency is not money. Thus, cryptocurrency transactions qualify as sales of goods instead of money transmission. But your business might also perform operations using cash or credit. If so, converting these payments to cryptocurrency meets the state’s money transmission criteria.
Tennessee’s cryptocurrency laws tend toward permissiveness. But businesses in the state still fall under federal jurisdiction. The United States’ cryptocurrency laws treat it as property instead of currency. The statutes also mandate that businesses working with cryptocurrency take certain precautions. These include comprehensive record-keeping and fighting potential money laundering. The federal government also forces businesses working with cryptocurrency to process money transactions. They do so to guarantee an alternative form of secure transmission.
How to proceed
Cryptocurrency may seem like an ambiguous and confusing form of capital. Yet the value it provides businesses may make it worth using even under unclear regulations. Consulting with a business law professional can help you understand how yours can do so.