New York Assembly introduces crypto payments bill for fines, taxes

A bill introduced in the New York legislature on January 26 would allow state agencies to accept cryptocurrencies as a payment method for fines, civil penalties, taxes, fees, and other payments charged by the state. .

New York Legislative Bill A523 introduced It comes from Democrat Rep. Clyde Bunnell, who is often seen as a crypto-friendly politician. This allows state agencies to create “contracts with people that offer state offices to accept cryptocurrencies as a means of payment for fines, civil penalties, various types of charges such as rent, rates, taxes and fees.” can be tied. , fees, revenues, financial obligations, or other amounts, including fines, special assessments, and interest, that you are obligated to pay to state agencies. ”

The bill does not require state agencies to accept virtual currencies as payments, but state agencies can legally agree to accept such payments, and these agreements can be enforced by the courts. Makes it clear that it should.

The bill defines “cryptocurrency” as “any form of digital currency in which cryptographic technology is used to regulate the generation of monetary units.” […] Including but not limited to Bitcoin, Ethereum, Litecoin, Bitcoin Cash. “

Depending on how this definition is interpreted, it may or may not include stablecoins such as USD Coin (USDC) and Tether (USDT). On the one hand, the stablecoin supply is usually regulated by the issuer, not the crypto. On the other hand, the bill recognizes that some cryptocurrencies have an “issuer,” and if the cryptocurrency issuer charges such a fee, the agency will charge the payer an additional fee. can be claimed.

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For the bill to become law, it must be passed by the New York State Legislature and Senate and signed into law by Governor Kathy Hochul.

The New York state government is often seen as hostile to cryptocurrencies. In November 2022, New York became the first state to pass a bill banning nearly all cryptocurrency mining. It has also been criticized for the restrictive “BitLicense” that all cryptocurrency exchanges must obtain. In April 2022, the mayor of New York City argued that he should repeal the BitLicense Act.