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CRYPTO TAX LAWYER Explains: How to LEGALLY Avoid Crypto TaxesDue to U.S. Department of Labor regulations, New York City cannot pay employees in cryptocurrency. By using a cryptocurrency exchange. In late , the Infrastructure Investment and Jobs Act became law and changed tax reporting requirements for cryptocurrency. Based on the new rules. Employers may violate both federal and state law by paying their employees with a non-fiat currency. The federal Fair Labor Standards Act.