Yes, crypto salaries are legal, but you must report them properly.
With countries all around the world adopting blockchain technology across various industries, finance professionals, especially accountants, are faced with the prompt need to adapt to working with crypto-based systems.
As of 2025, 10% of businesses globally adopt blockchain in their operations, from database solutions to salary payments (Source: Statista). To stay ahead in the finance field, accountants need to upskill and gain proficiency with blockchain payments. That’s why we’ve created this guide to walk you through how to handle blockchain-based salaries even when you’re not a crypto expert.

Key Takeaways
- Blockchain is an immutable, transparent, and fraud-proof digital ledger for transactions and asset tracking. It functions as a secure, decentralized database using cryptography.
- Blockchain facilitates payroll management using cryptocurrencies (e.g., Bitcoin, Ethereum, stablecoins, tokenized assets). These transactions are quick, offering 24/7 flexibility for international payments.
- Familiarize yourself with blockchain software, as traditional tools like QuickBooks are unsuitable for crypto payments. Crypto software is essential for tracking transactions, calculating gains/losses, payroll, tax reports, and reconciling crypto wallets.
- Accountants should document conversions, record payments and maintain appropriate legal documentation.
- If new, consult experts in crypto payroll, including legal and tax professionals, for proper guidance.
Understanding Blockchain
Blockchain is a digital ledger that facilitates the recording of transactions and tracking of assets within a network. It’s unique in the sense that it’s immutable, meaning completed transactions cannot be altered. Blockchain also provides complete transparency and serves as a fraud-proof way to process payments.
Technically, the blockchain is a decentralized distributed database that uses a network of computers to validate a transaction. Blockchains use cryptography to ensure the systems are hack-proof, secure, and accurate. Most individuals’ first-time interaction with a blockchain is on a crypto trading platform, but many organizations in other fields, such as healthcare and ecommerce, use blockchains to fill their supply chain and smart contract needs.
Factors Driving Blockchain Adoption
The key attraction of blockchains is their ability to provide transparency, security, and trust without any intermediary interference. As adoption of blockchain solutions increases, it is projected that the market will grow by nearly 1 trillion US dollars by 2032 (Source: Statista).
Blockchain can save businesses millions in terms of expenses spent on processing both local and international fees. Additionally, it can drastically reduce the risks of fraud and errors, which can jeopardize a company’s reputation and profitability.

Blockchain in Finance: Payroll Management
Blockchain has several use cases in finance, including in capital markets, asset management, payment and remittances, insurance, and other banking services. For payroll management, many companies adopt the use of cryptocurrencies, which are digital currencies that operate on the blockchain.
Crypto payroll involves paying employees with cryptocurrencies like Bitcoin and Ethereum, stablecoins like USD Tether (USDT), and tokenized assets like Pax Gold. Each cryptocurrency is sent and received on a blockchain network. For example, you can send or receive USDT on most blockchain networks like Tron, Ethereum, or Polygon.
Crypto transactions are usually completed within seconds, making it a top choice for many Web3 companies. It offers more flexibility for international payments and is not limited by work hours, as transactions are processed 24/7.
How To Handle Blockchain-Based Salaries
- Understand the payment system
Whether your organization is using a single cryptocurrency or a variety of them, it would usually give employees a choice to receive their payment in fiat or cryptocurrencies. For blockchain-based salaries, you don’t need to be a blockchain expert to handle crypto payroll. However, obtaining relevant certifications can help solidify your understanding of accounting, auditing, and compliance for crypto payments.
- Get familiar with the blockchain software
Traditionally, QuickBooks and similar software capture most of your accounting needs but these tools are not designed for crypto payments. When handling blockchain-based salaries, you would be required to:
- Track crypto transactions with crypto software tools like CoinTracking or Koinly.
- Calculate capital gains or losses and the holding period for the asset under management.
- Handle payroll using a crypto payroll software.
- Prepare tax reports.
- Reconcile company crypto wallets and exchange balances.
- Understand the peculiarities of crypto payroll

Crypto payroll software is designed to streamline blockchain-based salary payments. You can easily onboard employees onto the platform, generate reports, and track salary payments.
When working with crypto, salary payroll requires knowing the exchange rate for cryptocurrency to fiat conversions. The finance team may need to convert fiat to cryptocurrencies using a crypto trading platform. As the company accountant, you should request appropriate documents to keep records of the conversion’s exchange rate, transaction fees, and date.
When recording the crypto salary payment, you can follow your usual documentation process and add the following fields: crypto amount sent, fiat equivalent on the date of payment, wallet address, exchange rate source, and transaction hash for blockchain reference.
- Keep appropriate legal documentation
Crypto payments require compliance with existing financial regulations. In the US, UK, and most parts of the world, aside from El Salvador, cryptocurrencies are not valid legal tenders. Most financial regulatory bodies define cryptocurrencies as properties, just like stocks.
Cryptocurrencies are subject to capital gains tax, with the rate depending on how long they are held. When documenting crypto taxes, note that the rate for capital gains is usually between 0% and 20% and also depends on the income level and marital status. If your company stakes cryptocurrency with the aim of making a profit, the blockchain assets will be subject to income taxes.
- Talk with experts
If you’re new to blockchain payments, you may need to get instruction from professionals in your field with proficiency in crypto payments. Gather information from legal and tax professionals on how to properly navigate handling blockchain-based salaries.