Virginia Introduces Legislation to Regulate and Incentivize Cryptocurrency Activities
Summary:
The Virginia State Senate plans to introduce a bill that will regulate cryptocurrency mining, transactions, and taxation. If approved, businesses involved in crypto mining activities will not be required to obtain money transmitter licenses, and digital asset issuers and sellers might be exempt from securities registration requirements under specific circumstances. The proposed legislation also offers tax incentives to encourage the use of cryptocurrency for regular transactions.
Legislation detailing rules for crypto mining and transactions and their taxation status has been put forth in the Virginia State Senate. The proposed bill, Senate Bill No. 339, came from 34-year-old Senator Saddam Azlan Salim, the Senate's youngest member, on January 9. The bill is under discussion in the Senate and, if approved, it will progress to the House of Delegates for further review before being enacted into law.
The proposed law would liberate individuals and businesses participating in crypto mining activities from the requirement of obtaining money transmitter licenses. Additionally, it aims to protect miners from discrimination by barring industrial areas from prohibiting crypto mining or enforcing more stringent noise regulations than those standard within industrial areas.
“No license under this chapter shall be required for individuals or businesses participating in home-based or commercial crypto-related activities as per the definitions provided in § 15.2-2288.9," reads part of the bill.
Moreover, the bill suggests freeing issuers and sellers of digital assets from securities registration requirements under specific conditions, such as the digital asset not being deemed an investment contract: "If the digital asset doesn't fall under an investment contract, the issuer or seller did not promote it as a financial investment to the initial purchaser, and the issuer or seller has taken reasonable steps to halt the first buyer from buying it as a financial investment, then securities registration isn’t a requirement."
The bill further stipulates that businesses providing mining or staking services can't be categorized as "financial investments.". However, they must provide notice to qualify for the exemption. The legislation also intends to stimulate cryptocurrency use for regular transactions by introducing tax incentives. According to the bill, starting January 1, 2024, individuals can deduct up to $200 per transaction from their net capital gains for tax calculations. Such exemptions would apply to revenue generated from utilizing digital assets for the procurement of goods or services. Hence, United States lawmakers’ uncertainty and skepticism steer crypto regulations proposals.
Published At
1/21/2024 8:54:58 PM
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