New York Embraces Crypto Payments
Democratic Assembly Member Clyde Vanel’s New York State Assembly Bill A523 provides that where a state government agency has to pay or collect a monetary penalty or otherwise take an action that can be performed only in cryptocurrency, it can do so using the service offered by cryptocurrency companies. In recent news, the e-bill has been introduced to regulate the use of cryptocurrency in the United States. The bill refers to cryptocurrency as any virtual currency that uses encryption methods to regulate the creation of currency units, such as Bitcoin. This new legislation is aimed at providing more security and transparency for digital currencies. The e-bill will help protect consumers from potential fraud and money laundering by requiring all financial institutions to obtain a license before they can offer services related to cryptocurrencies. Furthermore, it will require these companies to report suspicious transactions and comply with applicable anti-money laundering laws and regulations. Additionally, it will provide clarity on how taxes should be applied to transactions made using digital currencies. With the passing of this bill, it is expected that these measures will help prevent illegal activities associated with cryptocurrency trading.
The New York State Assembly and Senate must work together to approve a bill before it can be signed off by Governor Kathy Hochul. If the two houses of the legislature are not in agreement, the bill will not move forward. This means that both the Assembly and Senate have to pass the same language for any given bill in order for it to become law. Once each house passes its own version of a proposed law, they enter into negotiations with each other to try and come up with a single version that both sides can agree on. This process is called a “conference committee” and requires input from members from both chambers. After reaching an agreement, both houses vote again on the final version of the bill, which then goes before Governor Hochul for her signature or veto. If she signs it off, then it officially becomes law in New York State.
In April 2022, the mayor of New York even called for the repeal of the BitLicense law. This bill was originally enacted in 2015, and it has been a major controversy within the cryptocurrency community ever since. The BitLicense law requires virtual currency businesses to obtain a license from the New York State Department of Financial Services before they can conduct business activities in New York State. In response to this, many firms have avoided doing business in New York due to the high compliance costs associated with obtaining a BitLicense.
The potential repeal of this law is being seen as a step in the right direction by many companies involved in cryptocurrency. If repealed, businesses will no longer be subject to costly regulation and will be allowed more freedom when it comes to conducting business operations related to cryptocurrencies.
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