Ohio No Longer Accepts Bitcoin for Tax Payments

Wilfred Michael 

Wilfred Michael

News reporter

03 October 2019,
12:45
Ohio No Longer Accepts Bitcoin for Tax Payments

A little over ten months after the United States state, Ohio approved for businesses to pay taxes with bitcoin, new leadership in the region has revoked that provision and suspended the website designed for the purpose.

Ohio State Treasurer, Robert Sprague, revealed the suspension of the OhioCrypto.com website in an announcement on Wednesday, citing a regulatory approval issue and low adoption as the reasons behind the decision.

Sprague’s office said in the update that the OhioCrypto.com website used for the tax collection falls under the classification of a “financial transaction device.”

Such status means that BitPay, the payment processor which facilitated the crypto to fiat conversions, should have received authorization from the Board of Deposit, which consists of the Attorney General, Auditor of State, and Treasurer of State.

However, it appears that authorization was not obtained before the rollout of the platform, necessitating the immediate suspension of the OhioCrypto.com website. 

Robert Prague also revealed in another statement that the website had not gained traction since it was launched with fewer than ten businesses opting to use bitcoin as a means fo tax payments.

Meanwhile, the Treasurer did not reveal in the update whether the service could be restored soon, but only stated the suspension would continue “until the Attorney General issues a formal opinion.”

As noted earlier, the decision to discontinue the bitcoin for tax payment option may also be attributed to a change in the public office. Former Ohio State Treasurer Josh Mandel, who had approved the portal when it launched in November, labeled it as just one more way for the region to show its support for innovation and technology advancement.

Mandel, however, has since January been replaced by Sprague, who has now found the portal as less beneficial to the State’s tax collection efforts.

 

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