Crypto

New York State Takes a Step Toward Cryptocurrency Adoption with New Bill

Published

1 year ago

January 29, 2023

New York State Takes a Step Toward Cryptocurrency Adoption with New Bill

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The state of New York has introduced a brand new invoice that might permit companies to simply accept cryptocurrency as a type of cost for fines, civil penalties, taxes, charges, and different funds charged by the state.

Launched on January 26 by Democratic Meeting Member Clyde Vanel, the New York State Meeting Invoice A523 laws suggests adjustments to the state’s present monetary regulation to permit for using cryptocurrencies in funds to state companies.

Extra particularly, the invoice permits state companies to enter into “agreements with individuals to offer the acceptance, by places of work of the state, of cryptocurrency as a method of cost” for numerous kinds of charges, together with “fines, civil penalties, hire, charges, taxes, charges, expenses, income, monetary obligations or different quantities, together with penalties, particular assessments and curiosity, owed to state companies.”

The invoice outlined “cryptocurrency” as any type of digital foreign money that’s ruled by encryption strategies and operates with out the interference of a 3rd social gathering. It talked about Bitcoin, Ethereum, Litecoin, and Bitcoin Money as a number of the extra distinguished cryptocurrencies that might be accepted as cost strategies if the invoice passes.

It’s value noting that the invoice doesn’t mandate state companies to simply accept crypto as cost. However, it gives them the choice to legally settle for such funds in the event that they agree.

The laws, which was introduced on Thursday, has been referred to the New York State Meeting Committee on Authorities Operations for additional examine and attainable amendments.

In the meantime, the New York state authorities has typically taken a harsh stance towards the crypto market. The state handed a invoice that banned almost all cryptocurrency mining final yr, and likewise requires companies working in crypto to have each a BitLicense and a conventional cash transmitter license.

Extra lately, the New York State Division of Monetary Companies (NYDFS) launched new steerage requiring firms to separate their very own crypto belongings from that of shoppers’. The transfer got here after reviews that there was co-mingling of funds between the now-bankrupt cryptocurrency change FTX and its buying and selling arm Alameda Analysis.

Notably, the regulation and implementation of cryptocurrencies have been a sizzling subject following the unprecedented collapse of FTX. Simply final week, the White Home printed a roadmap asking authorities to extend enforcement and ramp up efforts to control the crypto sector.

Nonetheless, there have additionally been some excellent news. As reported, US Congressman French Hill stated he plans to advertise a progressive regulatory framework for digital belongings so as to be sure “America is the place for innovation in fintech and blockchain.”

In a report earlier this month, the World Financial Discussion board (WEF) stated it believes blockchain know-how will proceed to be an “integral” a part of the trendy financial system. The group highlighted the widespread functions of cryptography and blockchain applied sciences, including that their use within the monetary companies sector is already notable.

Crypto

Arkansas Senate committee approves two bills to regulate cryptocurrency mining • Arkansas Advocate

Published

3 hours ago

April 19, 2024

Press Room

Arkansas Senate committee approves two bills to regulate cryptocurrency mining • Arkansas Advocate

An Arkansas Senate committee unanimously approved two bills Thursday that would regulate cryptocurrency mining operations, and the committee will reconvene Tuesday to hear more public comment on the policies.

Republican Sens. Joshua Bryant of Rogers and Missy Irvin of Mountain View introduced the bills Wednesday after the House approved resolutions Wednesday allowing them to be introduced during the fiscal session. The Senate approved identical resolutions April 11.

The discussion of whether and how much to regulate crypto mines on the state level arose from Act 851 of 2023, or the Arkansas Data Centers Act, which limited local governments’ ability to regulate crypto mines.

Crypto mines, large groups of computers that harvest digital currency, are often located in rural areas because they take up a lot of space. They also require significant energy to operate and water to keep computers cool.

There are crypto mines in DeWitt and in the Bono community near Greenbrier, and officials have raised concerns over foreign ownership and whether the mines pose a national security risk. Additionally, Greenbrier-area residents have filed a lawsuit claiming noise pollution from the local crypto mine, which is in Irvin’s district.

Six of eight crypto mining resolutions fall short in Arkansas House

Bryant’s bill, Senate Bill 78, would place noise limits on Arkansas crypto mines, prohibit them from being owned by certain foreign entities and allow local governments to pass ordinances regulating the mines.

The bill’s listed options for noise regulations include “using liquid cooling or submerged cooling” techniques, sealing computers into structures that minimize the sound heard outside, and being located at least 2,000 feet away from “the nearest residential or commercial structure.”

Residents or business owners within 2,000 feet of a crypto mine would be able to seek legal remedies regarding noise complaints in county circuit courts, Bryant said.

The bill also clarifies that individuals can engage in crypto mining from their homes without government interference, he said.

“Digital asset mining in the home is limited to the confines of what your utilities can provide you based on your normal retail rate,” Bryant said. “This is a hobby; this is something your personal computer is able to do if you so choose…If you want to operate a business out of your home with this and declare that, then you must follow local guidelines and local ordinances.”

Irvin’s bill, Senate Bill 79, would require crypto mines to be licensed by the state Department of Energy and Environment. It would also require the department to inform legislative committees of its crypto mine regulation methods.

Both bills contain emergency clauses, meaning they would go into effect immediately if Gov. Sarah Huckabee Sanders signs them into law.

Six more potential crypto regulation policies passed the Senate but failed in the House within the past week.

Senate Bill 78 largely accounts for one of the failed resolutions, which would have allowed local governments to regulate crypto mines and prohibit ownership of the mines by the list of foreign countries from which the federal International Traffic in Arms Regulations bans imports and exports.

Irvin said the two bills lay the groundwork to use “several layers of tools” to both regulate the crypto industry and have future discussions in the Legislature about whether to put additional regulations in place.

“There’s a lot we don’t know and that we still are learning, so I think we need the time to flesh all that out,” she said in an interview.