The New York State Government was usually regarded as hostile to cryptocurrency. It was even the first state to pass a bill banning all cryptocurrency mining In November 2022. On the other hand, Assembly Bill A523 will be a beacon of hope for crypto enthusiasts worldwide.
The bill legally permits state agencies to accept cryptocurrency payments with authority to enforce these agreements through the courts.
The democratic assembly member Clyde Vanel, known to be a crypto-friendly politician, introduced that the New York State Assembly State agencies may benefit from the bill by accepting cryptocurrencies in the payments of fines, civil penalties, taxes, fees, and others.
According to the bill, agencies can agree on cryptocurrencies as a means of payment for different circumstances, from fines to civil penalties. Also, rates, rents, taxes, charges, revenues, and financial obligations are other circumstances that accept payment with cryptocurrencies.
While the bill does not necessitate those state agencies are obliged to accept crypto as payment, it illustrates that state agencies can legally make agreements with individuals or entities to accept such payments and that the courts should enforce these agreements.
The bill defines cryptocurrency as any kind of digital currency in which encryption techniques are employed to manage the formation of units of currency, including but not limited to Bitcoin, Ethereum, Litecoin, and Bitcoin cash.
The bill also recognizes that some cryptocurrencies have an ‘issuer‘ and permits state entities to impose an additional fee if the cryptocurrency’s issuer charges a fee.
For the bill to be enacted as law, it will need to be approved by the New York Assembly and Senate and signed off by the state’s governor, Kathy Hochul.
New York State has also been heavily criticized for the BitLicense that all crypto exchanges are obligated to acquire. The mayor of New York proposed repealing the BitLicense regulation in April 2022. Meaning that this bill might be a “step in the right direction” in terms of the state’s opinion on cryptocurrency.