Accepting Bitcoin as payment...

As most of you know, I have been at this business for about two and a half years now. I recently re-enabled the bitcoin processing about a week later the first bitcoin payment came in, cleared fine, order shipped, went to exchange it for USD, Boom! Boy did that trigger some red flags. Two separate accounts of mine gave me 5 days to prove my identity or my accounts would be withheld, accounts that I have been using this entire time. I have to upload my Passport, DL, Business license, proof of address. This is on top of my long standing account that already has my name, address, and bank account numbers. All for a $220 transaction that had already been registered with my tax ID both federal and state previous to taking any money.

I would say there must be a ton of businesses out there avoiding the 35% tax, the 2.6% transaction fee +$0.30, and any currency conversion fees from other countries by using bitcoin. Not only is small business hard but we have to do all the same paperwork as the giant ones.

This to me is a very odd thing. I pay quarterly Fed tax, quarterly state tax, (different quarter for some stupid reason) quarterly Sales tax, so I pay taxes 13 times per year and have been for my entire working life. What would make them think I would try and cheat now, my account is registered in the business name, and has a wonderful standing and credit score.

$220 triggered the most insane document grab I have ever seen, Home loans do not need this much proof. As soon as you turn it back into US currency they want there cut ASAP.

I am not trying to go on a huge rant here but dam. Thankfully all my accounts are super legit, no tax funny business or stretching the truth. I feel an audit coming on…over a $220 sale.


Are you sure it’s due to taxes? I thought Bitcoin was under scrutibg for it’s use by money launderers, drug dealers, and terrorists. I’m not saying the majority is, but after 9/11, the banks get in big trouble if they harbor money for terrorists, so the identity requirements for bank accounts went up, which meant BC was a good hideout for that kind of stuff, which means the transactions are scrutinized.ight not be due to taxes as much as wanting to make sure the money isn’t illegal.

I read an article yesterday, coinbase or gdax had to hand over the accounts to the top 14k users so the feds could verify taxes were being paid or however that works. I have no issue doing it, neither did they, I just think it is a bit over the top when they already have my info and now they want more just because I used bitcoin. I feel a bit like guilty until proven innocent I guess. I did provide all the documents, and I still have not been verified so my money is on hold…not the bitcoin, that is already in my account, the rest of my online income from the store…that is the part I am not cool with.

That sucks.

I’m sure it is nothing but growing pains for the new world of mainstream crypto. Just gotta find things to complain about sometimes.

Well is up 40% last night, if its still bitcoin…

Nah, that is not my kind of gambling. I got the cash out ASAP.