New York will accept crypto for fines and taxes

New York will accept crypto for fines and taxes

Democratic Assemblyman Clyde Vanel has introduced Assembly Bill A523, which seeks to clarify that state agencies may accept cryptocurrency as payment

The legislation enables state agencies to reach agreements with people or organizations to accept cryptocurrencies as payment for various fees, including fines, penalties, taxes, and more. The bill clarifies that the courts should uphold these agreements, but it is important to note that it does not compel state agencies to accept cryptocurrency payments.

According to the bill, a cryptocurrency is any digital currency that controls the creation of currency units using encryption techniques, including but not limited to Bitcoin, Ethereum, Litecoin, and bitcoin cash. The bill also recognizes the existence of an “issuer” for some cryptocurrencies and permits state agencies to impose additional fees if the cryptocurrency's issuer imposes fees.

The bill must be approved by the New York Assembly and Senate and Governor Kathy Hochul to become law. It's important to remember that the New York state government has a long history of opposing cryptocurrencies. A law in New York was passed in November 2022 that outlawed most cryptocurrency mining operations there. Furthermore, the state's strict “BitLicense” law, which all cryptocurrency exchanges must obtain, has drawn much criticism. Even the mayor of New York demanded that the BitLicense law be repealed in April 2022.

Therefore, regarding the state's position on cryptocurrencies, this bill could be viewed as a “step in the right direction.”

Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.



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