Following the announced integration of payment app Strike with e-commerce platform Shopify to accept Bitcoin (BTC) via the Lightning Network, the crypto community raised concerns about the legal implications of the move.
Crypto researcher Matt Ahlborg believes that the event is a very significant development for BTC, as it allows the download of BTC without the need to go through the know-your-customer (KYC) process.
What Jack Mallers is really saying is that you will be soon be able to offload your Bitcoins in the real world without KYC’ing through an exchange first.
If this is true, it is actually an extremely substantive and important development for Bitcoin.
— Matt Ahlborg (@MattAhlborg) April 7, 2022
What Jack Mallers is really saying is that soon you will be able to download your Bitcoins in the real world without having to go through KYC through an exchange first.
If this is true, it is actually an extremely substantive and important development for Bitcoin.
However, attorney Kevin Thompson noted in a response that the event is likely to frustrate regulators. Being able to spend BTC without going through KYC allows users to get rid of BTC and avoid taxes according to Thompson. He predicts that regulators may respond to the event by “creating logging and reporting requirements for Shopify.”
Glennhodl, a Twitter user, also believe that the government can take steps to address the issue of BTC being dumped at major stores without going through KYC. However, he points out that while regulators may try to fight it, they won’t really be able to stop it.
Not to shit on the parade but…
I’d be absolutely stunned if the US govt. just accepts you walking into any major store and spending #bitcoin KYC free.
Ultimately they can’t stop it, but I’m pretty sure they’re gonna fight it.
The King’s gambit is the perfect metaphor.
— Glenn ‘$100k in May’ Hodl (@glennhodl) April 8, 2022
Not to spoil the parade but…
I would be absolutely flabbergasted if the US government would just accept you walking into any major store and spending #bitcoin without KYC.
Ultimately, they can’t stop it, but I’m pretty sure they’ll fight it off.
The King’s Gambit is the perfect metaphor.
david hood suggests do not tax low-value transactions. In a tweet, he praised the recent development, but also explained that more people would “take advantage” of the integration if there are no taxes on BTC purchases below $600.
In February, E-commerce giant eBay has also hinted at integrating crypto payments with its platform. In an interview, eBay CEO Jamie Iannone said the company is considering different payment methods as it processes billions of dollars in volume within its platform.
In the meantime, the New York Digital Investment Group (NYDIG) recently launched a program that allows employees of participating companies to receive payments in BTC. Through a Bitcoin Savings Plan, employees have the option to take a portion of their salary in BTC without paying any transaction fees.
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