The Katz Law Firm announced this week that it will begin accepting Bitcoin as payment for earned legal fees as soon as December. The Birmingham-based law firm said that it is responding to an increasing interest from technologically-oriented clients wishing to transact business in digital currencies. Consequently, the firm established the means for these clients to remit fees in Bitcoin.
"Our firm responds to the needs of our clients, including how they wish to pay for our services," said Don Katz, the firm's managing member. "Bitcoin is fast becoming a preferred method of payment for some clients, especially in cross border transactions. We have obtained comfort with the ethical issues and tax consequences involved, and put the necessary infrastructure in place to accommodate these clients' payment preferences."
Bitcoin is the world's most widely used cryptocurrency. The Bitcoin peer-to-peer network is made up of thousands of computers run by individuals around the world and does not answer to, nor is it controlled by a central authority. It is similar to gold in that its supply is constrained mathematically to up to a fixed amount of units that will only grow in a predictable manner.
The firm indicated that Bitcoin will only be accepted for the payment of fees earned and certain costs incurred. Retainers are currently not eligible for Bitcoin payment under the firm's policy because the exchange rate volatility conflicts with legal and ethical obligations related to administration of the firm's client trust accounts.
The firm has teamed with Circle Internet Financial to administer and clear the firm's transactions involving Bitcoin, as well as other exchange related transactions.
"Circle's platform is consistent with our firm's focus on agility," added Katz. "The simplicity and efficiency of their technology are truly cutting-edge in the cryptocurrency markets, and we feel that Circle represents the future direction of digital currency for both consumer and B2B transactions."
Circle is a privately held digital currency company based in Boston and with international operations headquartered in Dublin, Ireland. It provides fully insured electronic wallet to store Bitcoin and also provides exchange services to convert Bitcoin to various currencies or choice.
The Katz Law Firm delivers legal and advisory services to businesses, business owners and investors. Prior to founding the firm, Donald Katz, its managing member, was counsel for the $9 billion Combat Systems Tax Group at General Dynamics Corporation. Mr. Katz is well published on taxation, business law and e-commerce taxation policy.
Published: Fri, Nov 21, 2014
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