Cryptocurrency-Related Activities

Toshev & Boteva advises merchants who accept cryptocurrency as payment for products and services. We advise on the mechanics of accepting and storing those funds, the potential risks and mitigation strategies for holding cryptocurrency, and the tax implications.

Toshev & Boteva advise individuals and entities in setting up cryptocurrency exchanges, for exchanging between cryptocurrency and fiat or between different cryptocurrencies. We also advise clients on the different business models for exchanges such as a broker, a dealer, or a custodial exchange and assist in setting them up. In addition, we advise exchanges on structuring international arbitrage, taking custody of their customers’ private keys, dealing with cyber-threats, and verifying payment, storage, or technology vendors.

Toshev & Boteva advise on how to comply with BG, EU, UK, US, Israel and China Bank Secrecy Law (BSL), Anti-Money Laundering (AML), and Know Your Customer (KYC) requirements and with sanctions regimes. We assist clients in registering as a Money Services Business, complying with state money transmitter laws, and developing BSL policies and procedures. We advise clients on the use of blockchain analytics software for verifying customers’ funds and other software for automating AML and KYC processes and digital identity management.

Toshev & Boteva also advise on the tax implications, reporting regimes, and record collection and retention policies for merchants, exchanges, miners, and entities paying wages in cryptocurrency. We advise clients and engage with government regulators regarding fiat to cryptocurrency conversions, cryptocurrency to cryptocurrency conversions, hard-forks, and other taxable events.

Toshev & Boteva serves as legal, regulatory, and policy counsel to cryptocurrency entities and provides assistance with government inquiries, requests for information, legislative hearings, as well as investigations and enforcement actions.


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