Connecticut Lawmaker Introduces Bill To Tax Crypto Transactions

Representative Patricia Dillon, has submitted a bill that proposes “that the general statutes be amended to establish a fee to transfer or trade virtual currency in this state.” However, the text of the proposal does not go into any detail on the fees, or what such a fee’s benefits might be. The proposed bill is part of a growing body of legislation seeking to regulate cryptocurrencies.

A European Central Bank council member recently submitted the idea of requiring people who transact with cryptocurrencies in the E.U. to pay value-added tax (VAT) – a law which is already in effect in Australia.

U.S. lawmakers are increasingly looking to legitimise the potential benefits of cryptocurrencies and blockchain.

A new bill introduced to the Florida House of Representatives in January aims to legally recognize blockchain records and smart contracts. The measure would introduce stipulations that blockchain ledgers and smart contracts be treated as legally-binding means of recording data, so long as no pre-existing laws or regulations are infringed in the process.

Last month, a bill submitted to the Arizona Senate would, if approved, let people pay their state tax liabilities using bitcoin or other cryptocurrencies. That bill promotes the idea of using “a payment gateway,” such as bitcoin or another cryptocurrency in order to pay taxes, as well as interest and penalties, to the state government.