Louisiana and Virginia introduce Bitcoin-friendly legislation

Louisiana and Virginia introduce Bitcoin-friendly legislation

The competition for bitcoin in the political arena is getting wider. More and more US states are adopting Bitcoin-friendly legislation to attract capital. Bitcoin has become a world-class asset in thirteen years. Contrary to expectations, governments are fighting less and less against bitcoin and more and more over bitcoin.

A bill has been introduced in Louisiana to accept bitcoin as a way to pay taxes. While banks in Virginia are now allowed to manage bitcoins for clients. Slowly but surely, the position of Bitcoin in the US is getting stronger and stronger.

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Virginia Sets High Standards for Bitcoin Banking

Virginia banks that want to hold bitcoin for their customers have to meet strict requirements. In all, a bank wishing to provide this service must establish 26 appropriate risk management and compliance protocols. The Virginia bill passed by 39 votes to zero.

The final step is to sign the Virginia Governor. Banks that want to continue like bitcoin banks must implement effective risk management systems, have adequate insurance and launch an overview program to map cryptocurrency risks.

Interestingly, the Senate requires banks to keep clients in direct control of their assets at all times. Which means they should be given the option to get their private keys as well. † […] The bank will require the customer to transfer their controlling virtual currency to the bank by generating new private keys and handing them over to the bank.”

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Louisiana accepts bitcoin as tax payment method

There is a bill currently pending in Louisiana for accepting bitcoin as a means of paying taxes. Remarkably, the bill refers to “virtual currency”, which is not entirely clear with exactly who can pay. Not every cryptocurrency will be accepted when the law is passed.

It is not only about paying taxes, but also about paying licenses, fines, interest and other fees owed to the state. Louisiana will likely wait for the law a little longer, because lines 10 through 13 of the bill state that the law will enter into force no later than January 1, 2024.

Americans’ reactions are mixed. Not everyone is excited about using their bitcoin to pay taxes. “First they allowed it and then they made it mandatory to pay your tax with bitcoin.” This is one of the comments below the post on Reddit.

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