Ohio businesses can no longer pay taxes in bitcoin as the method gets suspended
October 3, 2019, 9:05AM EDT
1 min read
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Ohio, which became the first U.S. state to allow taxes to be paid in bitcoin last November, is no longer accepting cryptocurrency tax payments.
Ohio Treasurer Robert Sprague announced Wednesday the immediate suspension of the OhioCrypto.com website, which allowed businesses in the state to pay taxes in bitcoin, which was later converted into U.S. dollars, by blockchain payments provider BitPay.
Sprague’s office believes that the website falls under the definition of a “financial transaction device” and that BitPay should have been authorized by the Board of Deposit, which consists of the Attorney General, Auditor of State, and Treasurer of State.
“Until a formal opinion is issued by the Attorney General, I feel it is prudent to suspend the website,” said Sprague, adding that he remains committed to embracing innovative new technologies and processes.
The cryptocurrency tax payment method was introduced in the state by then-Ohio Treasurer Josh Mandel. At the time, the facility was reportedly expected to be made available to individuals too in the future. However, it seems to have got no traction with businesses. Sprague said in the 10 months since OhioCrypto.com’s launch, fewer than 10 businesses have chosen to pay taxes through this method.