What SMEs Need to Know About the Bitcoin Bubble

What SMEs Need to Know About the Bitcoin Bubble

Lee Murphy

Founder & CEO at Pandle

Views 636

What SMEs Need to Know About the Bitcoin Bubble

07.06.2017 12:30 pm

By their very nature, cryptocurrencies are encrypted, but this doesn’t make them any more secure than dealing in normal currencies, as many people may think. There is no regulation or policing that can investigate theft for you, so it’s important to get advice if you’re looking to to trade in or receive payment - cryptocurrencies are not the exception to the rule when it comes to monetary scams, and should not be treated as such. Bitcoin payments are also irreversible, and create an extra level of exposure that people may not be aware of. It’s important to act with caution and only do business with people and companies you know and trust.

If you do have a client who wants to pay you in Bitcoin, move ahead only if you have the appropriate systems in place, and do not consider the payment as automatic. Exchange rates with cryptocurrencies are incredibly volatile, so making or accepting payment this way can cause a loss when converting back to your standard currency.

Finally, despite what many people think, although cryptocurrencies are not official currencies, you still must adhere to tax and regulatory laws that apply to your business. Avoid falling victim to this pitfall and do your homework on how this will affect your business. If in doubt, consult advice from your accountant.

Latest blogs

Ian Bradbury Fujitsu UK

UK Finance's UK Payment Markets Report - Comment from Fujitsu

Over the past months, businesses have had to rapidly move away from physical cash in order to provide consumers with a safer service. However, this data shows us that a gradual movement away from cash in society started long before the Read more »

James Turner Turner Little

Protecting yourself against a recession

The coronavirus outbreak has spread to businesses, leaving many around the world counting costs. Notoriously, known as the Great Lockdown, it’s been affecting the world economy since early this year. The predicted recession is considered to be the Read more »

Alan Cole JHC Financial

Every Cloud: Covid-19 and the opportunity for digital transformation

Faced with tighter regulations and changing customer needs, over the last decade Wealth Managers have not had it easy – but with the development of new technologies, many have been able to create efficiencies, reduce costs and shrink operational Read more »

Nabeel Irshad Mastercard

Two sides of the same coin: Financial and digital inclusion

The issue of how to tackle financial inclusion has long been a part of the conversation in banking and financial services circles. Regulations have ledto the UK’s biggest banks having to provide ‘basic bank accounts’ to cater for those who do not Read more »

Alex Malyshev SDK.finance

The Biggest Danger to Branchless Banking

With a third of the global population on lockdown and scores of bank branches closed, many are convinced that branch banking is dead, and the future is branchless. Is this really true? Branchless alternatives like Revolut, N26, Monzo, and NuBank Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel