New York State took a bold step forward in the cryptocurrency world by introducing a bill that would make digital assets a legal form of payment within the state.

What happened: The legislation, introduced on Jan. 26, outlined changes to the state’s current finance law to allow the use of cryptocurrencies in payments to government entities.

According to the bill, “New York state authorities may accept cryptocurrency as a form of payment.”

The document defined cryptocurrencies under the revised state law and specifically mentioned it Bitcoin BTC/USD, ether ETH/USD, Litecoin LTC/USD and bitcoin cash BCH/USD as acceptable payment options.

The regulation and implementation of cryptocurrencies has been a hot topic in recent months, with various regulators grappling with how to approach these assets.

Also read: South Korean crypto exchange Bithumb under scrutiny for price manipulation

After the industry suffered significant losses in 2022 and fraudulent activity was exposed, pressure to regulate digital assets had increased.

Why it matters: In the wake of Arizona’s latest attempt at making bitcoin and other legal tender for cryptocurrencies in the state of New York followed suit with this change.

According to the bill, “This bill amends the state finance code to allow New York state agencies to accept cryptocurrency as a form of payment.”

The legal document also set out the guidelines for the definition of cryptocurrencies and their use by government agencies.

According to the draft law, “every state body has the right to conclude a contract for acceptance by state bodies with individuals cryptocurrency as a means of payment for fines, civil law penalties, rents, tariffs, taxes” and other civil law charges.

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