Crypto Frontline

New Hampshire Lawmakers Propose Crypto Tax Payments

New Hampshire Lawmakers Propose Crypto Tax Payments

New Hampshire Lawmakers Propose Crypto Tax Payments
January 24
08:05 2019

 

On January 7th, two New Hampshire lawmakers, Dennis Acton and Michael Yakubovich, came out with a very interesting proposal, which if approved will allow people to pay taxes and fees in cryptocurrencies.

This is not the first inclusive proposal for cryptocurrencies, as we’ve seen recently another bill which excludes digital assets from the securities law.

A long way to go

Despite the promising proposal, even though it will be approved with no delays, the state will begin to accept cryptocurrencies starting from July 1st, 2020. According to the legal document, which you can find here:

The plan shall address any accounting, valuation, and management issues relative to the acceptance of cryptocurrency and shall identify an appropriate third-party payment processor that will process cryptocurrency transactions at no cost to the state.  On or before November 1, 2019, the state treasurer shall submit the plan to the governor, the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, and the state library.  Pursuant to any criteria or procedures established in the implementation plan, a state agency may accept payment in cryptocurrencies on or after July 1, 2020.

Cryptocurrency volatility mentioned

The document also emphasizes the risks associated with accepting cryptocurrencies, in particular, the high level of volatility. All the payments will need to be converted in US dollars or there’s the need for continuous monitoring of cryptocurrency prices.

If the issue of volatility will persist, the State of New Hampshire could find itself in a situation where the converted number of cryptocurrencies in US dollars will face the risk of diminishing value.

A year ago, Bitcoin reached record highs and almost traded at $20,000 per token and it is still considered to be a “safe-haven”, since its value is located around $3,500. Volatility in other smaller cryptocurrencies is far greater, which could raise bigger risks.

The US is among the biggest markets for cryptocurrencies and judging by the latest signals, it wants to create a safe environment for blockchain-based startups and cryptocurrency investors. A much positive inclusive approach we find in Japan, which had already taken the path of self-regulation. It’s also a country where the banking sector is currently searching for blockchain application which will facilitate the transfer of money, for lower fees and fast execution.

Regulation for cryptocurrencies will continue to be in the center stage in 2019. The next G20 meeting will take place in Japan, and the biggest economies of the world already announced they plan to regulate digital assets.

 

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