One of the reasons why the cryptocurrency industry hasn’t been able to reach mass adoption is that there is no clear regulatory framework guiding it. As long as society exists, rules and regulations ensure order. Leaders in the cryptocurrency industry have been pushing for the creation of such a framework. Many bills have been proposed to this effect. One of them was a bill that was passed in New Hampshire. If passed into law, it would allow residents to pay their regular taxes in cryptocurrencies. Reports show that the cryptocurrency bill is already getting a lot of traction.
House Bill 470 Crosses Major Hurdle
The House Bill 470 proposes that state-level agencies should accept payments in cryptocurrencies. This includes the tax office. Last week, the bill cleared its first hurdle as the subcommittee unanimously approved it. Reps. Carol McGuire, Mark Proulx, and Samantha Fox made up the subcommittee. The three members of the House agreed that an amendment should be made to protect the state. This way, the tax officer will still collect taxes even when the transaction fails or something goes wrong.
Carol McGuire had this to say about the amendment:
“We are just being more specific about how we do it. We are not changing the intent of the bill in any way.”
At the time of writing, the text of the formal amendment was unavailable. However, another subcommittee meeting is scheduled for the 13th of February. If the bill gets approved by the Senate and the House, the only thing left would be the governor’s signature. As soon as it is signed, the state treasurer will be the one who would determine how to accept cryptocurrencies for tax payments before the end of November 2019. In July 2020, actual acceptance will start. For this to be possible, the state agencies will have to enter into a partnership with third-party processors so that the funds they receive can be converted to fiat.
Ohio Already Accepts Cryptocurrency Tax Payments
Ohio is already processing cryptocurrency tax payments and New Hampshire can use a similar system. In November 2018, this state became the first in the United states to accept cryptocurrency tax payments. Companies started paying their taxes in cryptocurrencies at will without any resistance for the tax office. Before a business can pay taxes in cryptocurrencies, it must be registered with the office through a portal dedicated to cryptocurrencies. When they visit OhioCrypto.com, they’ll be asked to enter their tax details to process the transaction. The entire process is fast and is being processed by BitPay. For now, this feature can only be enjoyed by businesses. However, the state announced that it would be made available for individual taxpayers in the future.
Bitcoin (BTC) Price Today – BTC / USD
Apart from Ohio, the law markers in Illinois and Arizona also started weighing the cryptocurrency tax payment proposal. Two months after, however, the law markers in Arizona scrapped the option. At the time, Senator Mike Williams said that they decided to scrap it because they didn’t understand it. In February, Georgia looked into it as well.
Do you think accepting cryptocurrency tax payments will help solidify the industry’s position in New Hampshire?