Virginia, USA Introduces Bill to Protect Digital Asset Mining Rights
Date: 2024-01-22 Author: Dima Zakharov Categories: IN WORLD
Protecting Digital Asset Miners
The Virginia State Senate has put forward Bill No. 339, introduced by Senator Saddam Azlan Salim, who, at 34 years old, is the youngest member of the legislative body. This bill, currently under discussion in the Senate, could have far-reaching implications for digital asset enthusiasts. If approved by the Senate, it will proceed to the House of Delegates for further consideration and eventual enactment.
One of the key provisions of this bill is the exemption of individuals and entities engaged in digital asset mining from money transmission licensing requirements. It also shields miners from discrimination by industrial zones that might seek to ban digital asset mining or impose stricter noise regulations than those applied in industrial areas.
No License Required for Mining Activities
The bill states, "No license under this chapter shall be required for any person engaging in home mining of digital assets, digital asset mining, or commercial activity involving digital asset mining, as those terms are defined in §38 15.2-2288.9."
Exemptions for Digital Asset Issuers and Sellers
Additionally, the legislation exempts digital asset issuers and sellers from securities registration requirements under specific conditions. For instance, a digital asset cannot be considered an investment contract, and the issuer or seller must take reasonable precautions to prevent the initial purchaser from acquiring the digital asset as a financial investment.
Encouraging Everyday Crypto Transactions
Furthermore, the bill aims to promote the use of cryptocurrencies for everyday transactions by offering tax incentives. Starting from January 1, 2024, individuals can exclude up to $200 per transaction from their net capital gain for tax purposes when using digital assets to purchase goods or services. This incentive applies to profits generated from the use of digital assets for transactions.
This legislative initiative in Virginia reflects the growing importance of digital assets and cryptocurrencies in the financial landscape, providing legal protection and promoting their widespread adoption.
