Crypto-acquiring

We advised the cryptocurrency service provider on the project:

OPINION ON THE ADMISSIBILITY AND REQUIREMENTS OF CRYPTO-ACQUIRING ACTIVITIES

We conducted a comprehensive legal analysis for our cryptocurrency client regarding the activity of so-called crypto-acquiring, i.e. enabling and handling the acceptance of payments for goods purchased online and in stationary stores using virtual currencies.

In the analyzed business model, a person buying goods from an online or stationary store will be able to choose a specific cryptocurrency as a payment method. The software (payment gateway / software in the POS terminal) provided to the merchant by our client will convert the price set by the merchant in traditional fiat currency into the amount of the chosen cryptocurrency at the current market rate. As a result, the seller (Merchant) is to receive the corresponding amount of virtual currencies to his crypto wallet.

The prepared opinion dealt with a number of legal aspects of the activity in question: from the civil legal qualification of the contract of ‘sale’ of goods for cryptocurrencies, through the regulatory qualification under AML/CFT regulations (VASP activity) and payment services regulations (MIP/KIP activity), to the assessment of such transactions under tax law. A total of 30 different pieces of legislation were analyzed.

DLK’s advice included:

1. legal and regulatory assessment of crypto-acquiring activities, taking into account the role of the various entities involved in this service
2. assessment of the legal status of cryptocurrencies in Poland, particularly in light of the concept of legal tender
3. assessment of the permissibility of accepting payment by Merchant of payments in cryptocurrencies for goods offered
4. determination of the method of determining Merchant’s income in the case of receiving payments in cryptocurrencies
5. identification of Merchant’s tax obligations related to the receipt of payments in cryptocurrencies
6. assessing the permissibility of showing prices in cryptocurrencies
7. indication of the required contractual documentation provided to the Merchant as part of the crypto-acquiring service, including the content of invoices
8. discussing the requirements for fiscal documents (receipt/invoice) issued to the buyer by the Merchant in case of payment with cryptocurrencies
9. discussion of requirements for documenting returns of goods paid for with cryptocurrencies
10. identification of upcoming regulatory changes that will affect crypto-acquiring activities (MiCA, Polish Crypto Act)