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Caitlin Long Against The Recently Released Rhode Island Crypto Tax Proposal
During the last few years, several jurisdictions have been trying to regulate the virtual currency market. Cryptocurrencies and blockchain companies expanded all over the world and the legal framework was not able to follow the developments in the crypto space.
This time, Rhode Island has proposed new tax regulations for virtual currencies. The intention seems to tax software development and R&D as well. The new Rhode Island Senate Bill No. 251 presented is titled: “An act relating to taxation — sale and use tax–non-collecting retailers, referrers, and retail sale facilitators act.”
The summary of this act reads as follows:
“This act would extend the requirement to collect sales tax to remote sellers in a way that conforms to a recent U.S. Supreme Court decision making it easier for states to compel collection of the sales tax from retailers who do not have a physical presence in their state.”
The intention is also to assess sales tax on marketplace facilitations, including those that provide cryptocurrencies used by buyers to pay for services.
#RhodeIsland looks to assess sales tax on marketplace facilitators including those who provide a #virtualcurrency used by buyers to obtain services. The states are pouncing on this new source of sales tax rev in the wake of South Dakota v. Wayfair (https://t.co/rTY2adUrty) pic.twitter.com/tBYoONpxVp
— Drew Hinkes (@propelforward) February 9, 2019
Caitlin Long, a crypto supporter and Wall Street veteran wrote on Twitter that companies should leave states that do not want blockchain technology to enter the market. Caitlin Long has been working in Wyoming to propose regulations to attract crypto and blockchain companies to the state.
ARE YOU KIDDING?? Check out #RhodeIsland #crypto tax proposal—it’s so broad that it includes taxing software development + R&D. Get out of states that show by actions they don’t want #blockchain cos & come to #Wyoming where we do! @Tyler_Lindholm @SenatorDriskill @GordonGovernor https://t.co/We4n3hNkIx
— Caitlin Long 🔑 (@CaitlinLong_) February 10, 2019
Gabor Gurbacs, Director at VanEck, answered to Caitlin Long that he would love to see more states competing for innovative businesses related to the fintech and crypto market. He has also mentioned that one of the examples is Wyoming.
Wyoming Senate has introduced new bills to support cryptocurrencies as a legal form of money. One of the main goals achieved by the state is related to recognize virtual currencies as personal property. At the same time, back in January, lawmakers in Wyoming have presented a new bill to allow firms to issue certificate tokens rather than stock certificates.
There are other jurisdictions around the world that have already implemented more open legal frameworks for virtual currencies and distributed ledger technology (DLT) to grow. Two of these countries are Malta and Switzerland, that are currently attracting firms from all over the world.
The U.S. Securities and Exchange Commission (SEC) is also trying to have a more active position in the crypto market.