So far only two Ohio-based businesses have paid their taxes using cryptocurrencies. Ohio’s state treasurer Robert Sprague told this at a forum organized by the Ohio State Associated Press ten days ago. Ohio is one of the first states where taxes can be paid using crypto, which is a service that’s right now only available to businesses and not to individuals.
The payment processing through Bitpay is still under review. No matter whether the payment program will gain traction or not, for the state of Ohio it’s an important investment. Ohio wants to become a hub for blockchain businesses. Right now, paying in crypto is just another option for taxpayers.
The filing process to pay your taxes in crypto requires three steps:
- Businesses need to register with the Office of the Ohio Treasurer and setup their accounts on the tax payment platform Ohiocrypto.com.
- Then they need to fill in their tax details, the tax period and payment amount
- And finally they can pay their taxes using compatible wallet
All payments are being processed by Bitpay. When Bitpay receives the bitcoin, they will convert the digital assets into dollars. These dollars will be send to the state treasurer’s office, which can be seen as the final step of the process.
Ohio might be the first American state that accepts bitcoin for tax payments, but it’s not the only government embracing cryptocurrencies. Some ministers in the UK want to embrace crypto for tax payments as well, while the European Union is developing its own regulations. Putin wants the Russian government to develop regulations before June 2019, while China is one of many countries that’s looking into developing a national digital currency.
Some countries already have their own cryptocurrencies. Of course Venezuela has the Petro, which is backed by the country’s raw oil reserves. While The Marshall Islands are introducing their own currency called Sovereign.
Bitcoin is considered legal in many countries, including the United States, Canada, Australia and much of the European Union. But there’s still a lot of work to be done on its legislation. Governments have difficulty grasping the concept of blockchain technology and everything that comes with it, for its decentralized exchanges (DEXs) to the Initial Coin Offerings (ICOs).
Also published on Medium.