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New York will allow cryptocurrency payments for fines and taxes

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New York State Assembly Bill A523, introduced by Democratic Assemblyman Clyde Fannell, seeks to clarify that state agencies can legally accept cryptocurrency as a method of payment.

The bill allows state agencies to enter into agreements with individuals or entities to accept cryptocurrencies for various types of fees, including fines, penalties, taxes, and more.

It is crucial to understand that the bill does not oblige state agencies to accept crypto payments, but makes it clear that courts must enforce these agreements.

New York takes crypto payments

The bill defines a cryptocurrency as any digital currency that uses cryptographic techniques to regulate the generation of units of currency, including but not limited to Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

The bill also recognizes that some cryptocurrencies have an “issuer” and allows state agencies to charge additional fees if a fee is charged by the issuer of the cryptocurrency.

For a bill to be enacted, it must be approved by both the New York Assembly and the Senate and signed by Governor Cathy Hochul.

It should be noted that the New York state government has historically had a hostile relationship with cryptocurrency. In November 2022, a bill was passed in New York banning the majority of cryptocurrency mining operations within the state.

Moreover, the country’s restrictive “BitLicense” law, which requires all cryptocurrency exchanges to be acquired, has come under heavy criticism.

In April 2022, the mayor of New York called for the repeal of the BitLicense Act. Thus, this bill can be seen as a “step in the right direction” in terms of the country’s stance on cryptocurrency.

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