New York State Takes a Step Towards Cryptocurrency Adoption With New Bill

[ad_1]

Image source: Pixabay

New York State has announced a new bill that would allow agencies to accept cryptocurrency as a method of payment for fines, civil penalties, taxes, fees, and other payments charged by the state.

Introduced on January 26 by Democratic Assemblyman Clyde Vanel, New York State Assembly Bill A523 suggests changes to current state finance law to allow the use of crypto -currencies in payments to state agencies.

Specifically, the bill allows state agencies to enter into “agreements with individuals to provide acceptance, by state offices, of cryptocurrency as a means of payment” for various types of charges, including “fines, civil penalties, rent, rates, taxes, fees, charges, revenues, financial obligations, or other amounts, including penalties, special assessments, and interest, owed to public bodies. »

The bill defined “cryptocurrency” as any form of digital currency governed by encryption methods and operating without the interference of a third party. He mentioned Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as some of the most prominent cryptocurrencies that could be accepted as payment methods if the bill is accepted.

It should be noted that the bill does not require state agencies to accept crypto as payment. On the other hand, it offers them the possibility to legally accept such payments if they agree.

The legislation, which was announced Thursday, has been referred to the New York State Assembly Government Operations Committee for further study and possible amendments.

Meanwhile, the New York State government has often taken a tough stance toward the crypto market. The state passed a bill that banned nearly all cryptocurrency mining last year, and also requires companies operating in cryptocurrency to have both a BitLicense and a Transmitter License. traditional money.

More recently, the New York State Department of Financial Services (NYDFS) issued new guidelines requiring companies to segregate their own crypto assets from those of their customers. The move came after reports of a mix of funds between now bankrupt cryptocurrency exchange FTX and its trading arm Alameda Research.

Notably, the regulation and enforcement of cryptocurrencies has been a hot topic following the unprecedented collapse of FTX. Just last week, the White House released a roadmap calling on authorities to strengthen law enforcement and step up efforts to regulate the crypto sector.

Yet there was also good news. As noted, US Congressman French Hill said he plans to promote a progressive regulatory framework for digital assets to ensure “America is the place for innovation in fintech and blockchain.” .

In a report released earlier this month, the World Economic Forum (WEF) said it believes blockchain technology will continue to be an integral part of the modern economy. The organization highlighted the widespread applications of crypto and blockchain technologies, adding that their use in the financial services industry is already notable.

[ad_2]