The state of New York is making progress toward establishing formal cryptocurrency rules that could ultimately bolster more widespread use of virtual currencies. New York legislature is considering a bill that would establish a taskforce to study and make recommendations regarding crypto and other digital currencies. This action follows the New York Attorney General creating the Virtual Markets Integrity Initiative and a slow rollout of the BitLicense.
If approved, the nine-person task force will provide a detailed report of their findings by December 2019. Specifically, the taskforce would study the effect of cryptocurrency on the state‘s tax revenue, the transparency and possible illegal activities of currency marketplaces, and the energy consumption of cryptocurrency mining operations.
This bill seems to be New York’s most recent attempt at grappling with cryptocurrency, and it parallels the Attorney General’s office’s creation of the Virtual Markets Integrity Initiative in April: a fact-finding investigation in which 13 cryptocurrency trading platforms were sent surveys regarding their practices. Both the AG’s and the legislature’s attempts to gain insight into the cryptocurrency space follow what is widely regarded as a failed regulatory move, the establishment of the BitLicense.
With the current growth of the cryptocurrency sentiments, it is likely that New York will continue their positive approach to the industry.
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