New York State takes a step towards cryptocurrency adoption with a new bill
New York state has introduced a bill that allows agencies to accept cryptocurrency payments for civil penalties, fines, taxes, fees and other charges.
Clyde Vanel (Democratic Assembly Member) introduced the legislation on January 26th. New York State Assembly Bill No. A523 Legislation proposes changes to the state’s financial law to allow the use of cryptocurrency in payments to state agencies.
The bill permits state agencies to enter into agreements with individuals to accept cryptocurrency as a payment method for various fees. This includes “fines and civil penalties”, rent, rates, taxes fees, charges, revenue or any other amount owed to the state.
“Cryptocurrency” is any digital currency that operates independently of third parties and is governed using encryption methods. The bill mentioned Bitcoin Cash, Ethereum, Litecoin and Litecoin as some of the most prominent cryptocurrencies that could be used as payment methods if it passes.
The bill doesn’t require state agencies to accept cryptocurrency as payment. It does, however, allow them to accept legal payments if they consent.
The New York State Assembly Committee on Government Operations has been referred the legislation to further review and amendments.
The New York state government has taken a hard line against the crypto market. A bill was passed by the state that bans cryptocurrency mining. It also requires crypto-related businesses to possess both a BitLicense (or traditional money transmitter license)
New York State Department of Financial Services (NYDFS), has released new guidance that requires companies to seperate their crypto assets from those of customers. After reports that funds were being mingled between the now bankrupt cryptocurrency exchange FTX, and its trading arm Alameda Research, the NYDFS took this action.
After the collapse of FTX, the topic of regulation and implementation has been a hot one. The White House issued a roadmap last week asking authorities to intensify enforcement and increase efforts to regulate crypto.
There have been some positive developments. According to reports, US Congressman French Hill stated that he will promote a progressive regulatory framework to digital assets to ensure “America is the place to innovate in fintech and Blockchain.”
The World Economic Forum (WEF), in a report released earlier this month, stated that blockchain technology will remain an integral part of the modern economy. The WEF highlighted the many applications of blockchain technology and cryptography, while pointing out their widespread use in the financial sector.