Purchase and sale of digital assets on the Platform do not require an MTA license because they do not involve the sale or issuance of a payment instrument. You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return.Gavin Newsom signed two bills into law that will impose sweeping obligations on companies engaged in virtual currency activities in California. You might need any of these crypto tax forms, including Form 1040, Schedule D, Form 8949, Schedule C, or Schedule SE to report your crypto activity. Overall, there is no legal prohibition on using cryptocurrency to fund a buysell agreement in California. The state of California has recognized cryptocurrency as property and therefore, it is subject to taxation under the same laws that apply to property. California enacted the Digital Financial Assets Law a cryptospecific licensing law which takes effect in July 2025. Before filling out Form 8949, you'll need to declare that you have transacted in cryptocurrency near the top of the Form 1040. Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities.