According to a report by the Brooking Institution, many US states have approved some regulatory stand in connection with virtual currencies including bitcoin and blockchain technologies supporting them.
The research categorizes jurisdictions based on their positions with regards to virtual currencies and the stages of interaction with the above technology mentioned.
In Four years two waves of regulations
Crypto and blockchain technologies are at various levels of executions for state governments. Regulatory regimes have not yet been introduced by some of them, in other to exploit the opportunities fully. Nevertheless, many have shown desire in leveraging these innovations to encourage state economies and advance public services. In the past couple of years, the writers have recognized “two waves of new crypto-related regulations,” as reported by Newsbitcoin.com.
In 2014, the first wave commences, which included over 20 states approving significant laws. Regulators in nothing less than 10 states such as New Mexico and California, gave cautions with regards to venturing into the virtual currency sector, at the first stage. In the past two years, the second stage derived into existence when a big portion of states commence navigating the possible execution of blockchain technologies in both the private and public sector respectively.
Among this states is Colorado whereby a warning methodology resulted in the approval of a bipartisan bill advancing the usage of blockchain technology for record keeping by the government. As reported by Newsbitcoin.com “Wyoming has been mentioned as a state seeking broader impact on the state economy.”
Currently, its parliament passed a law excusing virtual currency property taxation as reported by news.bitcoin.com. In the Country, the state has been applauding in being the top crypto-friendly jurisdiction.
The steps to legalize bitcoin as a payment method for taxation purpose have been advanced by two other states. In the US, Arizona believes it will be the first state to begin approving taxes in digital currencies.
In the state parliament, many bills acknowledging cryptos as currencies have been presented. Regulations of income tax with the use of digital currencies have been implemented by two states. The option to pay tax wit virtual currencies has also being provided by Georgia State. In the Senate, a draft that permits virtual currency payments for tax purposes and license fees has been filed.
The researcher also made findings that numerous state laws have established regulatory illuminating issues that are in connection to digital currencies and the request of already establish money transmission laws mostly. However, most of the states in the US have introduced some sort of regulatory standpoint in relation to virtual currencies and the blockchain technologies.