The state of New York has announced a new bill that will allow agencies to accept cryptocurrencies as payment for fines, civil penalties, taxes, fees, and other state-imposed payments.
Introduced by Democratic Assemblyman Clyde Vennell on January 26 New York State Assembly Bill A523 The legislation suggests changes to the state’s existing financial law to allow the use of cryptocurrencies in payments to state agencies.
More specifically, the bill allows state agencies to enter into agreements with individuals to allow acceptance of cryptocurrency, by state offices, as a means of payment “for a variety of fees” including “fines, civil penalties, rent, rates.” ” allows access. taxes, fees, charges, revenue, financial obligations, or other amounts, including penalties, special assessments, and interest, owed to state agencies.
The bill defines “cryptocurrency” as any form of digital currency that is governed by encryption methods and operates without interference from a third party. It mentions bitcoin, ethereum, litecoin and bitcoin cash as some of the major cryptocurrencies that can be accepted as payment methods if the bill is passed.
It is worth noting that the bill does not mandate state agencies to accept crypto as a form of payment. On the other hand, it provides them the option of legally accepting such payments if they agree.
The legislation, which was announced on Thursday, has been sent to the New York State Assembly’s Committee on Government Operations for further study and possible amendments.
Meanwhile, the New York state government has often taken a harsher stance towards the crypto market. The state passed a bill that banned nearly all cryptocurrency mining last year, and also required businesses dealing in crypto to have both a BitLicense and a traditional money transmitter license.
Recently, the New York State Department of Financial Services (NYDFS) issued new guidance companies need to separate Customers own crypto assets. The move comes after reports that there was a co-mingling of funds between now-defunct cryptocurrency exchange FTX and its trading arm, Alameda Research.
In particular, regulation and implementation of cryptocurrencies has been a hot topic following the unprecedented collapse of FTX. just last week, the White House published A roadmap asking authorities to increase enforcement and intensify efforts to regulate the crypto sector.
Nevertheless, some good news has also come. As noted, US Congressman French Hill Told He plans to promote a progressive regulatory framework for digital assets to ensure that “the US is the place to be for innovation in fintech and blockchain.”
In a report by the World Economic Forum (WEF) earlier this month Told It believes that blockchain technology will continue to be an “integral” part of the modern economy. The organization highlighted the wide-ranging applications of cryptography and blockchain technologies, adding that their use in the financial services sector is already notable.
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