Wyoming Easing Crypto-Taxes in Bid to Become Crypto-Capital of US
Sensing the economic opportunity in the emergence of a new niche, American states are beginning to compete with each other to introduce the most cryptocurrency-friendly legislation. The Arizona legislature is considering bills which protect the individual’s right to crypto-mining and enable taxes to be paid in crypto. Now the state of Wyoming wants to remove the property tax burden from cryptocurrencies.
The question of how best to deal with cryptocurrencies from a legal point of view has vexed governments and regulators worldwide. Are they currencies, or assets? And if assets, are they subject to capital gains?
Bill 111 was introduced to the Wyoming state senate this week. Under the bill, virtual currencies would be grouped with fiat and gold as “intangible items” which should be exempt from property taxes.
The bill defines virtual currencies as “any type of digital representation of value” which is either “used as a medium of exchange, unit of account or store of value” and which is “not recognized as legal tender by the United States government”.
This is far from the only development in Wyoming, a state which aims to become the cryptocurrency capital of the United States. Republican representative Tyler Lindholm has identified four pieces of crypto-friendly legislation which are on the way, including a relaxation of taxes and regulatory requirements around blockchain companies.
First up is House Bill 0070, which will exempt cryptocurrency exchanges from being considered as dealers. It will also free ICOs from money transmitter and securities laws, provided “the token has not been marketed as an investment and is exchangeable for goods or services.”
The tax situation around cryptocurrencies continues to be opaque as governments, regulators and taxpayers work out how best to deal with this new asset. Tax service Credit Karma reported last week that of the quarter of a million people who had reported their taxes through the service, fewer than 100 had admitted to any cryptocurrency gains.
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