New York legislator introduces crypto payments bill for fines, taxes

A measure introduced to the New York State Assembly connected Jan. 26 would let authorities agencies to judge cryptocurrency arsenic a signifier of outgo for fines, civilian penalties, taxes, fees, and different payments charged by the state.

JUST IN: A New York Senate has introduced a measure to let #Crypto arsenic a signifier of outgo

— Interpret Crypto (@interpretcrypto) January 27, 2023

New York State Assembly Bill A523 was introduced by Democratic Assemblymember Clyde Vanel, who is often seen arsenic a crypto-friendly politician. It allows authorities agencies to participate into “agreements with persons to supply the acceptance, by offices of the state, of cryptocurrency arsenic a means of payment” for assorted types of fees, including “fines, civilian penalties, rent, rates, taxes, fees, charges, revenue, fiscal obligations oregon different amounts, including penalties, peculiar assessments and interest, owed to authorities agencies.”

The measure does not obligate authorities agencies to judge crypto arsenic payment, but it does clarify that authorities agencies tin legally hold to judge specified payments and that these agreements should beryllium enforced by the courts.

The measure defines “cryptocurrency” arsenic “any signifier of integer currency successful which encryption techniques are utilized to modulate the procreation of units of currency [...] Including but not constricted to, bitcoin, ethereum, litecoin and bitcoin cash.”

Depending connected however this explanation is interpreted, it whitethorn oregon whitethorn not see stablecoins similar USD Coin (USDC) and Tether (USDT). On the 1 hand, the proviso of stablecoins is usually regulated by the issuer alternatively of by cryptography. On the different hand, the measure does admit that immoderate cryptocurrencies person an “issuer,” and it provides that agencies tin complaint the payor an other interest if specified a interest is charged by the cryptocurrency’s issuer.

Related: Arizona authorities legislator pushes to marque Bitcoin ineligible tender

To go law, the measure volition request to beryllium passed by the New York Assembly and Senate, arsenic good arsenic signed into instrumentality by the state's Governor, Kathy Hochul.

The New York State authorities is often seen arsenic hostile to cryptocurrency. In November 2022, New York became the archetypal state to walk a measure that banned astir each cryptocurrency mining. It besides has been criticized for the restrictive “BitLicense” it requires each crypto exchanges to acquire.  In April 2022, the Mayor of New York argued that the BitLicense instrumentality should beryllium repealed.