While some governments around the world, both local and national, are taking steps to try and limit the spread of the use of cryptocurrencies, many others are trying to ensure their citizens are free to adopt the revolutionary technology. The latest example of this is the US state of Wyoming where the legislator has recently approved a host of new measures meant to attract cryptocurrency business.
Property Tax Exemption for Cryptocurrencies
The senate of Wyoming has passed a decision (bill 111) exempting cryptocurrencies from property taxation in the state. The straight forward law defines “virtual currencies” as any type of digital representation of value that is used as a medium of exchange, unit of account or store of value, and is not recognized as legal tender by the United States government.
This was one of five bills passed by the legislature in Wyoming in recent time meant to streamline the legal framework of cryptocurrency and “blockchain” technology use in the state in order to facilitate the establishment of related business ventures there. Two other bills that we reported on before made utility tokens exempt from securities laws and made cryptocurrency exchanges exempt from the Money Transmitter Act.
Attracting Crypto Business to Wyoming
State Representative Tyler Lindholm went on an interview on CNBC television to promote Wyoming as a welcoming destination for crypto businesses. He explained that if you mine bitcoin there is now no longer a property tax, no income tax and no corporate tax. Wyoming is one of only nine states out of all American states that have no income tax.
Apparently trying to lure energy hungry bitcoin miners to his state, Representative Lindholm added that the state has a lot of excess electricity, exporting most of its total production capacity. According to the US Energy Information Administration, Wyoming produces about 40% of all coal mined in the country, has the largest uranium mining operations in the country, is one of the top 10 natural gas-producing states, and has a rapidly growing wind power capacity. All while being the least populated state in America.
What other steps should individual American states take to attract cryptocurrency businesses? Share your thoughts in the comments section below!
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