The state of Wyoming has passed legislation to attract miners and cryptocurrency companies to its jurisdiction.
Wyoming has always been a little different from the rest of the United States. It was the first state to grant women suffrage, and its current policies are deeply libertarian. And especially in Wyoming, the first DAO in the United States was registered.
In most states, any company that processes cash (or cryptocurrency) payments must prove they have sufficient funds of their own to recover the loss. New Wyoming laws exempt cryptocurrency transactions from such collateral rules. At the legislative level, it is guaranteed that cryptocurrency transactions and clients will be free from most state taxes, including sales tax and property tax.
Wyoming is trying to move beyond traditional industries like coal, oil and gas. The state has a charter for banks – specialized depository institutions that deal with digital assets. The state has already approved four applications, including one for the cryptocurrency exchange, Kraken Bank.
The charter allows banks to be composed of two financial blocks. The first, traditional aspect: customers can make deposits in cash. The second is a block of digital assets, where customers purchase, store or exchange cryptocurrencies that can be traded on the Kraken exchange. They can also deposit profits from cryptocurrency transactions after converting them into US dollars.
Caitlin Long, CEO of digital asset bank Avanti, said Wyoming’s legal framework creates a favorable legal environment for the crypto industry.
“The Wyoming bill showed that the industry is legal and operates in a recognized manner.”
Wyoming, in addition to favorable taxation, provides cheap energy resources and fast Internet connections, which are ideal for mining companies. Texas and Wyoming are leading the race to attract cryptobanks and miners who are forced to seek new jurisdictions after being banned from working in China.
