Is It Legal to Get Paid in Crypto?
Based on verified official data as of 20.07.2026; hands-on update coming.
In most Western jurisdictions, yes — as taxable income. The US treats crypto wages as W-2 income at fair market value under IRS Notice 2014-21. EU member states generally allow crypto compensation, though minimum wage must typically be paid in fiat. New Zealand has an explicit tax ruling permitting crypto salaries since 2019. Russia prohibits crypto as payment, salaries included. This is a research summary, not legal advice — rules differ by country and change often.
TL;DR
- US: legal, taxed as wages at fair market value, with withholding, FICA and W-2 reporting
- EU: generally allowed above the fiat minimum wage; taxed as employment income at receipt
- Explicit framework: New Zealand (IRD ruling, 2019). Explicit bans: Russia, China
- Not legal advice — confirm with a local tax professional
Where crypto pay is legal and taxed
United States: IRS Notice 2014-21 treats virtual currency as property, and wages paid in it are taxable at fair market value on the date of payment. They are subject to federal income tax withholding, FICA and FUTA, and must be reported on Form W-2 — the medium of payment does not change the tax character of wages.
European Union: employment-law surveys across member states find that salary generally must be paid in fiat, but nothing prevents paying bonuses or above-minimum-wage components in crypto. The common limit is that the statutory minimum wage cannot be paid in crypto, and Spain caps payment-in-kind at 30% of total salary. Crypto compensation is taxed as employment income at fair market value on receipt.
New Zealand: a public Inland Revenue ruling effective 1 September 2019 explicitly permits crypto salaries under conditions — a fixed, regular amount under an employment agreement, in a readily convertible asset (the IRD names BTC, ETH and stablecoins including USDT), subject to normal PAYE.
Where it is restricted or banned
Russia's 2020 digital financial assets law legalizes owning and trading crypto but prohibits using it as payment for goods, services or salaries, with fines for crypto payments taking effect from 2026. China prohibits crypto transactions broadly.
A practical pattern across jurisdictions: labor codes constrain employee salaries far more than B2B invoicing. Freelancers and contractors invoicing in USDT typically face tax-reporting obligations rather than payment-method prohibitions — but the income is still taxable where you are resident.
None of the above is legal advice. Employment, tax and currency rules interact differently in every country; confirm your specific situation with a qualified local advisor before accepting crypto compensation.
Who this is NOT for
- Anyone seeking a way to receive untaxed income — crypto wages are taxable essentially everywhere they are legal
- Employees in Russia or China, where crypto payment is prohibited
- Readers needing jurisdiction-specific legal advice — this is a research summary only
Frequently asked questions
For legality and tax, usually no — both are taxed as income at fair market value on receipt in the US, EU and New Zealand. New Zealand's IRD explicitly lists stablecoins such as USDT as salary-eligible because they are readily convertible. The practical difference is volatility: USDT income equals a fixed dollar amount, which simplifies both budgeting and tax valuation.
Alan Wake
Editor & lead card reviewer
Reviews and fee data on NomadCard are compiled and checked against each issuer's official documentation. Our scoring method is public — see the methodology.
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