Cryptocurrency Sought of as a Solution to Issues Surrounding Cannabis Tax Payments

Around this time of the year, many tax deadlines for many states and countries around the world seem to be fast approaching. Because this is going on in many places, people are naturally thinking about tax and whether cryptocurrency has any effects on the calculation and collection of tax. In some places, cryptocurrency investments became taxable as far back as January 2018. However, it would seem like some of the effects of cryptocurrency on tax might specifically affect cannabis.

Cryptocurrency And Cannabis Tax

About ten of the United States have now legalized recreational marijuana while the number for medical marijuana is around 33. However, even in some of these states where cannabis is legal, many financial institutions have still refused to do any transactions with cannabis businesses because it is still regarded as a drug. This attitude towards businesses who deal with cannabis has caused quite a few problems for them when they do need to pay tax.

In California for example, these businesses have to employ the use of armored vehicles to transfer cannabis and cash to state councils because banks have refused to do the transactions for them. This problem seems like a quite a show stopper but cryptocurrency could really save the day.

Cryptocurrency Bill For Cannabis Businesses

Phil Ting, a member of the California State Assembly, has pushed forward a bill which would enable the state’s cannabis industry remit taxes to both the county and city governments using cryptocurrencies. This would make the process of tax payment very stress-free, secure and more accountable since the banking institutions have refused to help.

According to Ting:

“You have stores with cash and then you have at times warehouses with cash and the amount of cash they have is just very difficult to secure. It’s dangerous enough transferring out product around. It makes it doubly dangerous transferring all the cash around.”

He also went ahead to say that:

“A small cannabis store just like a small storefront. They’re in a residential neighbourhood. There are people who live there who are all around. If something happened that was potentially violent or dangerous, there could be repercussions for that neighbourhood.”

Even though the bill has not yet seen approval, it is speculated that using cryptocurrency to pay tax bills could happen by next year.

How This Could Help Cryptocurrency Adoption

This development could benefit the cryptocurrency industry very heavily. This is because the industry would probably have to invest considerably in cryptocurrency if that’s how they will be paying their taxes. If this happens, it could encourage widespread adoption of cryptocurrency among different companies across different sectors, whether currency or not.

Today's Top Coin Market Price Prediction: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC)

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify bitcoin stories to the bare basics so that anyone anywhere can understand without too much background knowledge and add in social research and feedback insights. When he's not neck-deep in crypto news, Tolu enjoys music, loves signing and is an avid movie lover.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin Giving Strong Bullish Signals, Markets to Roar Higher into Next Year

Today, Bitcoin is on the move, aiming for $11,000, currently trading around $10,915. Adding to this bullishness is all the dry powder. $20 billion worth...

ETH Locked on Aave & Uniswap Records a Sharp Rise

Decentralized Finance (DeFi) is back to recovering, currently at over $11 billion, reaching an all-time high of nearly $12 billion from last week, as...

Bahamas Central Bank Confirms CBDC ‘Sand Dollar’ to Launch In Less Than 30 Days

The Bahamas Central Bank has confirmed that its pipeline CBDC ‘Sand dollar’ will roll out next month as anticipated. This will mark the first...

KuCoin Hack Update: 11 Crypto Projects Freeze the Stolen Tokens

Over the weekend, KuCoin lost about $275 million in BTC, XRP, BSV, XLM, TRX, stablecoins, ETH, and other ERC-20 tokens in a security breach....

Bitcoin Re-Entering the ‘Intense Historical Trading' Area Following a Strong Uptrend

Bitcoin is back at near $11,000. The leading digital currency has been making its way upwards since the mid of last week. Today, to mark...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today