Ohio businesses can no longer pay taxes in bitcoin as the method gets suspended

Bitcoin • October 3, 2019, 9:05AM EDT
UPDATED: October 3, 2019, 11:47AM EDT
aceshot1/ shutterstock.com

Quick Take

  • Quick Take Item

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.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.