New York State takes a step toward cryptocurrency adoption with new bill

New York State has announced a new bill that would allow authorities to accept cryptocurrencies as payment for fines, civil penalties, taxes, fees and other payments collected by the state.

Introduced by Democratic Rep. Clyde Vanel on Jan. 26 New York State Assembly Bill A523 proposes changes to the state’s current finance law to allow the use of cryptocurrencies in payments to state agencies.

More specifically, the bill allows state agencies to “make arrangements with individuals to facilitate the acceptance of cryptocurrencies as a means of payment” for various types of fees, including “fines, civil penalties, rents, installments, taxes, fees, levies, revenue , pecuniary obligations or other amounts, including penalties, special assessments and interest, owed to government authorities.”

The bill defines “cryptocurrency” as any form of digital currency that is controlled by encryption methods and operates without the interference of a third party. Bitcoin, Ethereum, Litecoin and Bitcoin Cash are cited as some of the most prominent cryptocurrencies that could be accepted as payment if the bill passes.

It is worth noting that the bill does not require state authorities to accept cryptocurrencies as a form of payment. On the other hand, it offers them the opportunity to legally accept such payments if they agree to it.

The law, announced Thursday, has been referred to the Government Affairs Committee of the New York State Assembly for further consideration and possible amendments.

Meanwhile, the New York state government has often taken a tough stance on the crypto market. The state passed a law last year banning almost all cryptocurrency mines and also requires companies operating in the cryptocurrency to have both a BitLicense and a traditional money-transmitting license.

Recently, the New York State Department of Financial Services (NYDFS) released new guidelines that require companies to own their crypto assets separate from those of customers. The move came after reports that there was a commingling of funds between now-bankrupt cryptocurrency exchange FTX and its trading arm Alameda Research.

Cryptocurrency regulation and implementation, in particular, has been a hot topic following the unprecedented collapse of FTX. Only last week did the White House have a roadmap released, urging authorities to step up enforcement and ramp up efforts to regulate the crypto sector.

Still, there is some good news too. As reported said US Congressman French Hill said he plans to promote a progressive regulatory framework for digital assets to ensure “America is the place for fintech and blockchain innovation.”

In a report earlier this month explained the World Economic Forum (WEF) that it believes blockchain technology will continue to be an “integral” part of the modern economy. The organization highlighted the widespread applications of cryptography and blockchain technologies, adding that their use in the financial services sector is already significant.

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