Crypto News Bulletin from bitcoinmagazine

Thursday February 28, 2019 5:16 PM
3 weeks 2 days ago

Blockchain Advocacy Coalition Sponsors Bill to Allow Crypto for Legal Cannabis Tax

Activist group Blockchain Advocacy Coalition (BAC) has sponsored a bill in California’s 19th State Assembly District, set to allow legal cannabis businesses in the district to pay their state taxes using cryptocurrency. The bill was proposed by Assemblymember Phil Ting on February 20, 2019.If put into law, it would affect the district’s many cannabis businesses, particularly all of those in San Francisco.Logistical Barriers: Delivering Bags of CashOne of the most prominent driving factors behind this bill, and where the decentralized nature of financial blockchain technology really has a chance to shine, is the fact that banks lack cooperation with these businesses. Citing a conflict with federal law, many financial institutions refuse to let cannabis businesses open bank accounts, thereby cutting off this multibillion-dollar industry from using digital money transfers.“The current recommendation from the state of California to cannabis businesses is that they use armored vehicles to pay their taxes,” said Alexandra Medina of the BAC. “That’s inefficient and risky. It’s closer to how one might pay taxes during the gold rush, with a stage coach and gunman, than how you would expect California to accept taxes in 2019.”This current approach is a logistical “nightmare for cities, the state and businesses,” she claimed. It’s dangerous to money couriers, and it forces revenue agencies “to count tens of thousands of bills,” causing...