Bitcoin-friendly cities in the US
While most of the states in US prefer to have Bitcoin and other cryptocurrencies to be heavily regulated, there are a few Bitcoin-friendly states such as Nevada where Blockchain transactions are not taxed, Texas and New Hampshire.
On June 5, the Nevada State Legislature became the first US state to approve a bill which will block local government entities from taxing Blockchain transactions.
Nevada is often recognized as the “silver state” due to its significant silver resources. It is also famous for being the home to Las Vegas, the city of entertainment. A big chunk of its revenue comes from casinos, and money is valuable in this location. For the first time, the state of Nevada has taken a significant step in paving the way for the continued progress of Bitcoin.
On March 30, Republican Senator Ben Kieckhefer introduced Senate Bill 398 intended to protect Blockchain transactions under the state’s Uniform Electronic Transactions Act.
The bill provides an accurate definition of the Blockchain, stating that it is:
“An electronic record of transactions or other data which is:
Uniformly ordered;
redundantly maintained or processed by one or more computers or machines to guarantee the consistency or non-repudiation of the recorded transactions or other data;
Validated by using cryptography.”
Some cities are more accepting than others, and it should be no surprise which cities got on board with digital currencies first. You can probably guess three or four of the cities on this list without thinking too hard about it.
5. Philadelphia
2013 was a pretty good year for Philly. The Eagles made the playoffs, and Koppenheffer counts 16 local merchants who accept Bitcoin payments. “Combine a number of technology businesses, a pizzeria, and even an art gallery with a dedicated Bitcoin community, and you end up with a strong choice to open the countdown,” he writes.
4. Portland, Oregon
Of course Rip City would be an early adopter of Bitcoin. Fourteen merchants accept the digital currency in a city half the size of Philly. Plus, local startup Gliph is making mobile payments easier for Android users.
3. Los Angeles
America’s second-largest city is home to some 35 Bitcoin merchants, per Koppenheffer’s count, and about 300 Bitcoin Meet-Up members. There was also that Tesla Model S that was paid for in Bitcoins a couple of weeks ago down in Costa Mesa.
2. New York
The Big Apple makes it only to second on the list because of its “low-merchant-to-population ratio — which is something like 160,000 to 1,” Koppenheffer writes.
1. San Francisco
Yep, the title of most Bitcoin-friendly city goes to the largest city in Silicon Valley. That merchant-to-population ratio is a much friendlier 30,000 to 1 in San Francisco, which is also home to Bitcon startups Coinbase and Tradehill, among others.
Let's take a look at the current regulation landscape in five prominent US States: Washington, Illinois, Hawaii, California, and Florida.
Washington
Washington legislators have started creating new rules that will encompass Bitcoin transactions. Businesses with digital currency services are covered by these rules. The Senate Bill 5013 clarifies the definition of Cryptocurrency and includes various disclosure requirements on consumer information. The bill will also require online currency exchanges in Washington to maintain a surety bond.
The bill was introduced in January and it’s already cleared to be sent to Governor Jay Inslee. Speculations about the bill are mostly positive. Despite this regulation progress, some Cryptocurrency-based startups are having doubts operating in the state. Washington has also applied heavier cybersecurity frameworks.
Illinois
When Secretary Bryan A. Schneider of the Illinois Department of Financial and Professional Regulation (IDFPR) announced a new initiative that contains several Cryptocurrency implications, some factors were clarified. The initiative, known as Digital Currency Regulatory Guidance, was focused on digital currencies like Bitcoin, Dogecoin, Litecoin, Ethereum, and ZCash. The guidance increased the regulation of numerous activities related with digital currencies.
According to Ciccolo, the IDFPR and Schneider will continue to deliver unwavering support to the innovation of Blockchain Technology. Ciccolo is also optimistic that Bitcoin technology will contribute to the financial innovation of Illinois.
Hawaii
Relying on public leverage, Coinbase – a well-respected Bitcoin and Ethereum exchange – announced that it ceased offering support for customers in the State of Hawaii. The reasons pointed out are the “impractical” regulatory policies concerning Bitcoin in that state. This was based on the notice received by Coinbase, indicating that Cryptocurrency operators must hold case reserves equivalent to the values held by customers.
Now that Hawaii is considering a bill that would create a working group focused on analyzing digital currencies and Blockchain technology, Coinbase leaders saw a new glimmer of hope. Once the bill is passed, Coinbase will resume working with regulators. This could mean a positive regulatory development for Hawaii.
California
Recently, California’s Assembly Bill 1123 – a counterpart of New York’s BitLicense – was proposed. Once passed, the bill would enact the Virtual Currency Act – an initiative that would prevent a person from engaging with virtual currency businesses unless that person is officially licensed by the Commissioner of Business Oversight or exempted from the requirement.
According to Kuskowski, the proposed bill should not be the direction to go in. Such level of regulation, just like BitLicense, caused New York to lose its prominence and status as a crypto hub. Apparently, with California’s position as tech innovation and startup capital of the world, the regulation will have greater catastrophic effects.
Florida
Now that Florida House Bill 1379 was passed, many people will be aware of the full definition of virtual currency. The bill will also regulate and prohibit the use of virtual currency for money laundering. The term ‘virtual currency’ was officially added to the main definition of “money instruments” based on Florida’s Money Laundering Act. The bill is now with Florida’s governor and is expected to be signed soon.
Kuskowski has also stated that a balance is needed among the side of legislators and Cryptocurrency users. People must also understand that a precise regulatory environment will help businesses in making strategic decisions. This way, many businesses can grow.
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Bitcoin becoming Great again . All the Best !!!
