Wyoming is starting to look like the savior of the crypto world. Up to now, Internal Revenue Service (IRS) has been tightening its grip on cryptocurrency holders, warning them to pay taxes on their virtual currency gains and transactions. But Wyoming has decided to side with blockchain on this debate and provide crypto users with a golden opportunity to grow and succeed.
Wyoming’s Take on Blockchain and Cryptocurrency
Wyoming had the interests of people of heart, long before blockchain came into the spotlight. With no tax on personal income, corporate income or intangible assets such as stocks, bonds and bank accounts, it has attracted many startups and businesses. Now it seems to have fixated on one point: to adopt this new crypto-based world as another safe haven.
AN ACT relating to securities; providing that a person who develops, sells or facilitates the exchange of an open blockchain token is not subject to specified securities and money transmission laws; making conforming amendments and providing for an effective date.
However, in order to qualify as an open blockchain token, the owner must follow three conditions. Firstly, the token is not promoted as an investment. Secondly, the token indirectly works as a currency such that it is exchangeable and can be used to buy / sell products. Thirdly, the token should not be ‘entered into any agreement’ where the sole purpose is to ‘manipulate the price of the token on a secondary market’.
The journey of a bill is typically divided into several parts: Firstly, it is initially introduced in the house; in the case of HB0070, it was received at February 9th. Then it is referred to a standing committee followed by a second and third reading. Now that HB007 has successfully passed through all these steps, it will be sent to the second house for further action.
What’s Next for the State?
Wyoming has a few other pending bills which are related to blockchain and cryptocurrency, including Wyoming House Bill 19 (HB0019) and Wyoming Senate Bill 111 (SF0111). HB0019 spares virtual currencies from the ‘Wyoming Money Transmitter Act’, a law passed in 2003, which is responsible for cryptocurrency exchanges being inoperable in the state. It was introduced to the Senate on February 19th and is one step ahead of HB0070. SF0111, on the other hand, exempts virtual currencies from property taxation and was introduced to the Senate on February 16th.