Over the last 10 months, The U.S government through the national financial regulator, Securities and Exchanges Commission has been creating cryptocurrency regulations. The news that Ohio now allows businesses to pay tax bills using cryptocurrencies via OhioCrypto.com is a sign of the shift in the industry.
Ohio Allows Taxpayers to Use Cryptocurrencies to Pay Tax Bills
Most taxpayers are aware of the various tax consequences linked to digital currencies. Until recently, it was not possible to use cryptocurrencies such as Bitcoin or Ethereum to pay for taxes. The creation and launch of OhioCrypto.com will make Ohio the first state in the United States to allow people to pay tax bills using cryptocurrencies.
In a recent interview, Josh Mandel the current Treasurer of Ohio stated that the state government is happy and proud to make Ohio the first state to allow citizens to pay tax using cryptocurrencies. He also stated that the main objective of this project is to provide all Ohioans with more convenient and traceable ways of paying for taxes.
Ohio leadership understand the power of blockchain technology and OhioCrypto.com will run on this technology. However, it is important to note that not all taxpayers will be able to use the new payment system to pay for their taxes using cryptocurrencies. As noted by Forbes, only businesses that are based and operating in Ohio are permitted to use it. One of the main reasons why the payment system, OhioCrypto.com, is limited to a few is yet to be revealed and Mandel has not given any hints about expansion.
How OhioCrypto.com Will Function
OhioCrypto.com was developed by State of Ohio to facilitate payment of tax bills in cryptocurrencies. The first step is registering on the website to pay tax. The second step is selecting one out of the 23 eligible business-related taxes that you want to pay for then process the payment. The beauty of this blockchain powered tax payment system is that there is no transaction limit.
State of Ohio Treasurer Office has also stated that the office main objective is to ease the process of tax payment for Ohioans. It further stated that it is not involving in holding, mining or investing in digital assets. All payments are processed by one of the accredited and renowned third-party cryptocurrency payment processors, BitPay. The amount paid is converted into dollars before the amount is deposited in the State bank account.
Ohio is the first state to allow cryptocurrencies to be used as a mode of paying taxes. We hope that more state governments will follow suit and set up similar tax payment systems. The success of OhioCrypto.com project could lure the U.S government to legalize cryptocurrencies in the country fully. Click to read more exciting cryptocurrency news here.