The state of New York has taken a bold step forward in the world of cryptocurrency by introducing a bill that would make digital assets a legal form of payment within the state.
What Happened: The legislation introduced on Jan. 26 outlined changes to the state’s current financial law to allow for the use of cryptocurrencies in payments to state agencies.
According to the bill, “New York state agencies will be able to accept cryptocurrencies as a form of payment.”
The document defined cryptocurrencies under the revised state law, specifically mentioning Bitcoin BTC/USD, Ethereum ETH/USD, Litecoin LTC/USD and Bitcoin Cash BCH/USD as acceptable payment options.
The regulation and implementation of cryptocurrencies have been a hot topic in recent months, with various regulatory agencies grappling with how to approach these assets.
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Following the significant losses experienced by the industry in 2022 and the fraudulent activities that were uncovered, there had been increased pressure to regulate digital assets.
Why It Matters: In the wake of Arizona’s recent attempt to make Bitcoin and other cryptocurrencies legal tender in the state, New York followed suit with this amendment.
The bill stated, “This act amends the state finance law in relation to allowing New York state agencies to accept cryptocurrencies as a form of payment.”
The legal document also laid out the guidelines for the definition of cryptocurrencies and their use by state agencies.
According to the bill, “Each state agency is authorized to enter into an agreement with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payment of fines, civil penalties, rent, rates, taxes,” and more civil duties.
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