Disclaimer
This is general information, not legal advice. Consult a lawyer familiar with your jurisdiction before making compliance decisions.
The Good News for Most Merchants
If you're accepting crypto payments as a merchant (selling goods or services), you're generally in the same position as accepting card payments. You're not a money services business (MSB) — you're a regular business that happens to accept a new payment method.
When KYC Is Required
KYC is typically required when you are:
- Exchanging crypto for fiat on behalf of customers (you're an exchange)
- Custodying customer funds (you hold their crypto)
- Running a crypto payment processor as a service
If you're just receiving payment for goods/services and immediately converting or holding USDT for yourself, KYC of your customers is generally not required in most jurisdictions.
AML Best Practices
Even without formal AML obligations, reasonable precautions protect you:
- Keep records of all transactions (Paychainly exports CSV)
- For large transactions, verify customer identity through your existing onboarding
- Use blockchain analytics tools (Chainalysis, TRM Labs) for high-risk customers
- Never accept payments from flagged wallet addresses
VAT / Sales Tax
Revenue is revenue. If you charge VAT on card payments, charge the same on crypto payments. The USDT amount at the time of receipt is your invoice value for tax purposes.
Jurisdiction Differences
The EU, US, UK, and Singapore all have different frameworks. The EU's MiCA regulation (2024) creates clearer rules for crypto asset service providers. Most merchant-accepting-payment scenarios fall outside MiCA's scope.