Ohio state stops accepting tax payments in bitcoins

by in Cryptocurrency News

OhioCrypto suspension

Ohio Treasurer Robert Sprag announced the suspension of the OhioCrypto.com web service, which allowed companies registered in the region to pay taxes in bitcoins.

Related: Burger King Venezuela now accepts crypto payments

Ohio opened the opportunity for businesses to pay taxes with cryptocurrency in November 2018. The service was organized in partnership with BitPay processing, which converted bitcoins into US dollars. The author of the initiative was the previous state treasurer, Josh Mandel.

Robert Sprag took office in January, and his office began checking OhioCrypto.com for state compliance. They came to the conclusion that the web service falls within the definition of “device for financial transactions” and requested an official opinion from the state attorney general.

The state treasurer noted that until the attorney general makes an official opinion, he considers it reasonable to suspend the website.

In addition, the Sprag office decided that BitPay, as a third-party payment processor, was selected without a mandatory tender and was not certified by the State Depository Council.

Sprag said it is vital that Ohio studies the innovative technologies and processes that drive the state into the future. However, they must make sure that any innovations that are being implemented, such as OhioCrypto.com, comply with Ohio law.

According to him, for 10 months of the web service, only 10 companies used it to pay taxes.