In a recent article by the Financial Times a ruling has been agreed in New Zealand that for the first time legalises payment of wages in cryptocurrencies, an area we have discussed before as a likely change in the UK in the near future. As such, this is the first-time companies have legally had the option.
A key issue with this form of payment is the fact it’s mainly unregulated and as such funds can be delivered without being tracked. The tax authority in New Zealand have allowed payment in currency such as bitcoin from 1st of September as long as they’re fixed, regular amounts being paid. It was also confirmed it currently excludes the self-employed and employers using cryptocurrencies would need to deduct tax as with normal pay through their PAYE system.
Various firms and voices in the industry has seen this as a major move forward in the legitimising of these forms of payment but comes with issues such as the large fluctuations seen in such currencies as well as the concerns around privacy but it is a major step forward in how these currencies are seen.