Florida and Wyoming are ranked as the best states for crypto taxes.
What Happened: The Coin Ledger report ranks Florida, Wyoming and New Hampshire as the best states for crypto taxes and businesses thanks to exemptions from money transmission licenses.
Florida and Wyoming, as a result, have become centers for crypto investors and crypto businesses. Both states have no state income tax.
New York, California and Hawaii rank at the bottom when it comes to cryptocurrency-friendliness. Crypto businesses are required to register for a BitLicense to operate in New York. Recall how the rule drove Kraken, a cryptocurrency exchange, out of New York.
Hawaii has some of the highest state taxes in the country and requires companies dealing in virtual assets to acquire a Money Transmitter License and have traditional reserves backing digital assets.
Why It Matters: Florida has gone a step further in allowing businesses to pay for state fees in cryptocurrency. Last August, Miami Mayor Francis Suarez announced that he would accept Bitcoin as part of salary if he is elected as President. He had also said earlier that he would accept Bitcoin as part of his campaign contributions.
Background: All U.S. states have a different approach to regulating the cryptocurrency industry, with some offering tax relief and regulation and others being stringent towards the sector.
While Wyoming has introduced crypto banks to serve companies in the crypto sector, Texas is also seen as a crypto-friendly state in the country as it also allows state-chartered banks to offer cryptocurrency custody services. The state has also created a policy-friendly framework for miners.