In a recent State Board of Deposit meeting, a US-based website OhioCrypto.com is temporarily suspended. Ohio treasurer Robert Sprague declared the suspension of the website. OhioCrypto.com allows businesses to file their taxes using Bitcoin (BTC) cryptocurrency.
According to Sprague, the reason behind the suspension of the Ohio website is BitPay, which was not following Ohio’s law. BitPay is the third-party payment provider that converts cryptocurrency to the US dollars and deposits them back to the treasury.
The State Board of Deposit has requested the Attorney General of Ohio to provide a formal opinion on the payment method by the third-party providers should have a financial transaction device according to Ohio’s law.
According to Sprague, Ohio must be promoting new innovative technologies and processes to drive in Ohio’s future. The website shuts down temporarily, and the site is redirecting to the main website of the treasurer.
Sprague continued that he is a treasurer of Ohio, and his responsibility is to protect the tax money of Ohio, provide trusted stewardship and follow the laws of the country. He thinks that it is wise to suspend the website until the Attorney issued a formal opinion.
According to Dave Yost, the Attorney General, people from the black market make payments in cryptocurrency that do not have untraceable bank records. There are other good businesses, but they are not paying taxes by Ohio.
The payment option by cryptocurrency is not in much use. According to the department of treasury, there are only ten types of businesses that are using this service in 10 months.
Josh Mandel launched the Bitcoin tax service, State Treasurer, in the previous November. He had shown his interest in cryptocurrency. This service allowed companies to make a variety of tax payments, which include employee withholding tax, tobacco sales tax, and public utility tax by cryptocurrency like Bitcoin.