People, whether they are the client or the entrepreneur, do various business transactions every single day which can be time-consuming and hassle. But with the emergence of technology through-out the decade, business transactions have become more convenient for everyone. Now, every Tom, Dick, and Harry can do trades online which consumes lesser time and is hassle-free, especially to those people who are always full of schedule. Many people preferred this type of system because it is way easier and doesn’t require too much effort. However, how do online business transactions work?
An online business transaction, also known as electronic commerce, is a trade between the consumer and the business through the internet. Both the business and the consumer don’t need to be physically present so it replaces the tedious process of the traditional business to business transactions. It also benefits any form of business, whether large or small, by enabling them to sell their goods and services at a balance that a traditional offline trade cannot obtain.
There are multiple numbers of inclinations that can affect the whole electronic commerce industry but arguably, the most common way is by accepting cryptocurrencies as a payment method. Cryptocurrency is an online-based method to secure financial transactions and other investments and is secured by cryptography. It is not regulated nor controlled by any government or other financial authority.
The first form of cryptocurrency was created in 1983 by the American cryptographer, David Chaum. This was anonymous cryptographic electronic money called ecash. Later, in 1995, Chaum implemented ecash through the electronic money corporation that he founded, Digicash Inc. It was one of the earliest forms of electronic money companies designed to ensure the complete privacy of users who do online transactions.
The mysterious and pseudonymous developer Satoshi Nakamoto, whose true identity is still unknown, created the first decentralized cryptocurrency, bitcoin, in January 2009. Bitcoin is a digital currency that is created and held electronically and is the first successful digital coin that can be transferred over the web.
According to Nakamoto, he never intended to invent a currency since he’s going was to conceive something; something that many people failed to create in the nineties, which is digital cash. The most outstanding part of Nakamoto’s invention was discovering a way to decentralize a digital cash system.
Though there are no physical Bitcoins in existence (only with a benefiting relationship with E-commerce), both consumers and sellers can have the vast advantages that Bitcoin has to offer.
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Use Of Bitcoin Via Internet
First, since Bitcoin is used via the internet, it is expected to have a speedy transaction. There is no need to wait for hours or even days to make and clear payments, entrepreneurs can instantaneously dispatch the goods out.
No Third-Party Costs
Second, there’s no need to pay for the third party so the cost will be lesser. As mentioned, Bitcoin is operated on a decentralized system, so this cuts out the expensive fees charged by banks for issuing or acquiring funds.
Secured Digital Currency
Third, Bitcoin provides high security with its system. The credibility of Bitcoin is tremendously great for its protected payment access.
Fourth, Bitcoin promotes trades in developing countries. Numerous developing countries across the globe don’t have a gateway to the monetary establishments we depend on, but with Bitcoin’s peer-to-peer system which the third party isn’t necessary, lets payments to reach their destination with high security while becoming a gateway to online retail across new territories.
Lastly, it doesn’t require PCI compliance at all. Since Bitcoin is secure by design, the entrepreneurs only need to do is to make sure that they’ve secured their digital wallets and payment requests, so when it comes to the customary tedious security checks in e-commerce, following the requirement to follow the conventions of PCI compliance.
In all of these benefits that a Bitcoin user can receive, both consumers and sellers must also know the legalities behind the world of Bitcoin. Now, what is the law for selling Bitcoin to your friends and family, you ask?
Law on Selling Bitcoin to Your Friends and Family
Bitcoin Law, in all its forms, is based on the fact that it uses the standard system, blockchain, which records transactions made in Bitcoin (or any other cryptocurrency) and is maintained across several computers that are connected in a peer-to-peer system. One should remember that the transactions done using Bitcoins can be done secretly, it becomes more attractive to unlawful citizens and other terror organizations; however, the laws and regulations of Bitcoin and other cryptocurrency vary from one country to the other across the globe.
The countries that allow the usage of Bitcoins are; The United States, Canada, Australia, and The European Union which includes Finland, Belgium, Cyprus, United Kingdom, Bulgaria, and Germany.
Though all of the aforementioned countries say yes to the usage of Bitcoin, still their respective Bitcoin law for selling to friends and family differ from each other. For instance, in the United States, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FiNCEN) has been issuing guidance on Bitcoin since 2013. In Canada, Bitcoin is regarded as a commodity and like its neighboring country, the United States, continues a holistic Bitcoin-friendly stance while guaranteeing that cryptocurrency is not being used for money laundering. Moreover, in Australia, Bitcoin is looked upon as a currency just like any other and permits individuals to barter, mine, or purchase it. Lastly, even though the European Union has trailed expansions in cryptocurrency, it hasn’t provided any official decision on legality and acceptance of Bitcoin. In the absence of central guidance, each aforementioned country has devised its own Bitcoin regulations.
With the boosts of Bitcoin in e-commerce, many are still in doubt whether to use this or not since there are numerous phishing scams and issues of money laundering. Many are still pondering on how to introduce Bitcoins to their respective families. The best way is to learn the dos and don’ts of Bitcoin and Red Road Legal can definitely help you. Red Road Legal is a legal consultant cryptocurrency lawyer in the United States. It provides litigation services and blockchain lawyers. The lawyers of Red Road Legal are thought leaders in the cryptocurrency space in the USA. They can guide cryptocurrency investors and businesses, and providing each client with valuable insight. Every cryptocurrency lawyer in the team is an industry expert who utilizes opportunity cryptocurrency opens up for the client’s business, making sure the client comes out as a better business on the other end. It provides legal assistance to its clients who are looking to make the most out of ICOs, setting up Smart Contracts, combing through complexities of Federal State Regulation, to name a few.
Red Road Legal is your trusted firm. It specializes in using cryptocurrency law to your advantage. Its priorities are always on what will bring the client success in their respective industry.