Ohio State Senator Niraj Antani has introduced a new bill that could make it possible for people to pay their state and local taxes using Bitcoin and other cryptocurrencies. If passed, this would make Ohio one of the few states where residents can use crypto to pay taxes. Senator Antani’s proposed law means that all parts of the Ohio government would have to accept Bitcoin and other digital assets for payments. While the specific cryptocurrencies allowed for payments haven’t been decided yet, this bill is seen as a big step forward in normalizing crypto usage in Ohio’s economy.
Senator Antani believes that cryptocurrency is not just the future but also a significant part of our present economy. He wants Ohio to be a leader in adopting digital currency payments, and this bill could make Ohio a trendsetter in cryptocurrency adoption in the United States.
This isn’t Ohio’s first attempt at letting people pay taxes with Bitcoin. Back in 2018, Ohio became the first state to allow businesses to use Bitcoin for tax payments, thanks to an initiative by then-State Treasurer Josh Mandel. However, this effort didn’t last long because the Ohio Attorney General ruled that the program needed approval from the State Board of Deposits, which never acted on the matter. As a result, the program was shut down. Senator Antani’s new bill aims to avoid this issue by clearly requiring that the state accepts cryptocurrency payments for taxes and fees.
Antani praised Josh Mandel for being an early advocate for crypto adoption, saying that Ohioans owe him thanks for taking the first step. The Senator believes this time will be different because his bill directly requires all Ohio state and local government divisions to accept crypto payments. This means that people in Ohio may soon be able to pay state taxes, local taxes, and fees using digital assets like Bitcoin.
The proposed bill would also let state universities and pension funds invest in cryptocurrencies, marking a big expansion in how Ohio could use and benefit from digital assets. This part of the legislation shows that Senator Antani wants Ohio to go beyond just accepting crypto for payments and actively engage with the crypto asset class as part of the state’s financial system.
Other states have taken steps to adopt cryptocurrency for tax payments, too. Colorado became the first state to officially accept Bitcoin for tax payments in 2022, allowing citizens to pay various taxes through PayPal, although refunds are still given in U.S. dollars. Florida has shown interest as well, with Governor Ron DeSantis pushing for businesses to pay state taxes in cryptocurrency in 2022. Meanwhile, Utah passed H.B. 456, a bill that allows the state government to accept cryptocurrency for tax payments starting in 2023.
By allowing people to pay their taxes and fees with cryptocurrency, Senator Antani believes Ohio will be at the forefront of this digital revolution. He wants the state to become a leader in financial modernization and crypto adoption. If this bill passes, Ohio would stand alongside other states that are experimenting with the use of digital currency in the public sector.
In contrast to the optimism about Ohio’s crypto adoption, the cryptocurrency exchange Gemini, founded by the Winklevoss twins, recently announced that it will close all customer accounts in Canada by the end of 2024. This news surprised many because Gemini had been one of the more prominent crypto exchanges in Canada. In a September 30 email, Gemini informed its Canadian users that they would have until December 31 to withdraw their assets from the platform.
Gemini’s move follows new regulations introduced by Canadian financial regulators earlier in the year. These rules require all crypto asset trading platforms operating in Canada to sign a legally binding pre-registration undertaking if they want to continue their operations. The regulations also prevent exchanges from allowing Canadian clients to buy or deposit stablecoins without approval from the Canadian Securities Administrators (CSA).
The CSA implemented these regulations due to concerns about recent insolvencies involving major crypto companies like Voyager Digital, Celsius Network, FTX, BlockFi, and Genesis Global. These incidents prompted Canadian authorities to introduce stricter investor protection provisions to prevent further financial losses for Canadians using crypto platforms.
Gemini had quickly agreed to the new rules, filing its pre-registration in April. A spokesperson for Gemini described Canada as one of the most important and developed markets in the Americas, highlighting the country’s essential role in Gemini’s international expansion. However, despite complying with the new regulations, Gemini decided to close its Canadian operations.
Other big crypto exchanges reacted differently to the new Canadian rules. Kraken and Binance also filed the pre-registration required to keep operating in the country, while several other exchanges, including OKX, dYdX, Paxos, Bybit, and Binance, chose to leave the Canadian market. These exchanges found the new rules too restrictive or challenging to continue their operations in the country.
As Ohio looks to the future with Senator Antani’s proposed cryptocurrency tax payment bill, the cryptocurrency world is seeing changes in different regions, like Canada. The contrast between Ohio’s push for crypto adoption and Canada’s stricter regulations shows how governments worldwide are still figuring out how to handle the rapid rise of digital assets.
If Ohio’s bill passes, it could encourage more states to consider accepting cryptocurrencies for tax payments, further normalizing Bitcoin and other digital currencies in everyday financial transactions. Ohio would be setting an example for how states can embrace the financial innovation brought by cryptocurrencies. Senator Antani’s vision is to make Ohio a place where crypto isn’t just a novel idea but a real part of the state’s financial system.
The proposed law could also attract cryptocurrency investors and businesses to Ohio, as they may see it as a state that is open to digital currency payments and investments. This could boost Ohio’s economy by creating more jobs in the cryptocurrency industry, attracting blockchain startups, and making the state a hub for financial modernization.
In addition to allowing tax payments in crypto, the proposed bill could help universities and pension funds in Ohio diversify their investment portfolios by including digital assets. This move could increase awareness and acceptance of crypto as an asset class, further establishing Bitcoin and other cryptocurrencies as legitimate financial instruments.
Senator Antani’s bill is a significant step in the ongoing journey of cryptocurrency adoption in the United States. As more states like Ohio, Colorado, Florida, and Utah explore ways to integrate crypto into their financial systems, it becomes clear that cryptocurrencies are becoming a more accepted part of the American economy. If Ohio’s bill is successful, it could encourage other states to follow suit, eventually leading to wider acceptance of digital currencies across the nation.
Ohio’s proposed crypto tax payment bill represents a major effort to bring digital assets like Bitcoin into everyday use. It shows a willingness to adapt to new financial technologies and could set the stage for future legislation in other states. By embracing crypto payments, Ohio hopes to be a leader in financial innovation and a trendsetter in cryptocurrency adoption across the United States.
