A bill concerning the transactions and mining of digital assets, as well as how they are taxed, has been introduced by the Virginia State Senate.
The 34-year-old senator Saddam Azlan Salim’s Jan. 9 proposal, Senate Bill No. 339 (SB 339), is presently being discussed in the Senate. If accepted, it will go to the House of Delegates for discussion and possible passage into law.
Among the many essential features of the bill is the removal of the need for money transmitter licenses for people and companies engaged in cryptocurrency mining.
It also eliminates discrimination against miners by forbidding industrial zones from outlawing cryptocurrency mining or enforcing harsher noise regulations.
Additionally, in some circumstances, SB 339 exempts cryptocurrency issuers and dealers from securities registration requirements. If the cryptocurrency asset is not seen as an investment contract, was not promoted as one, and appropriate measures were done to keep buyers from seeing it that way, then the exemption is applicable.
Furthermore, the measure compels businesses to file a notification to be eligible for the exemption, even though it does not classify mining or staking services as “financial investments.”
In an effort to encourage the use of cryptocurrencies in regular transactions, SB 339 also suggests tax advantages that would take effect on January 1. When using cryptocurrency to pay for goods or services, individuals can deduct up to $200 per transaction from their net capital gains for tax purposes.
Salim’s measure reflects related legislation that has received support from the Satoshi Action Fund in states including Nebraska, Indiana, and Missouri. This nonprofit group has created model laws to protect the rights of cryptocurrency users and miners at the state level.
Its mission is to educate legislators and regulators about the advantages of Bitcoin (BTC) and cryptocurrency mining. Adding a workgroup tasked with researching and making suggestions on blockchain technology, digital asset mining, and cryptocurrency activities within the Commonwealth distinguishes SB 339 from the legislation submitted in other jurisdictions.
Comprising representatives from state agencies, academic institutions, industry associations, and public interest groups, the workgroup will explore blockchain and cryptocurrencies’ current and potential uses, assess their benefits and risks, and establish regulatory and legal frameworks, best practices, and standards.
