Ohio chief treasurer Robert Sprague announced that he would immediately stop supporting the OhioCrypto.com website that allowed companies to pay taxes with cryptocurrency, which was subsequently converted into US dollars using the BitPay service infrastructure.
According to Sprague, the site fell under the definition of “financial transaction device” and BitPay was supposed to get permission from the Board of Deposit, which included the Attorney General, Auditor of State, and Treasurer of State.
“Until a formal opinion is issued by the Attorney General, I feel it is prudent to suspend the website,” Sprag said, adding that he remains committed to the idea of disseminating innovative technologies and processes.
Sprague also said that taxpayers can be part of the debate over whether the program should continue or not.
“This is why we’re having this review in a very public forum,” he said.
The opportunity to pay taxes with cryptocurrency in Ohio was confirmed by the then treasurer Josh Mandel. It was assumed that in the future it will be available for individual taxpayers. However, almost a year after the launch of OhioCrypto.com, less than ten business representatives used the site, Sprague said.
The Ohio government was the first in the United States to allow companies registered in the region to pay taxes in crypto
To pay taxes using cryptocurrency, entrepreneurs had to be registered on the OhioCrypto.com portal, which can’t be reached anymore.
The law, signed by the authorities of the region, states that Bitcoin can be used to pay all types of taxes and fees – from excise taxes on cigarettes to insurance premiums on employees.
Last year Ohio Deputy Treasurer Josh Mandel said cryptocurrency adoption as a legal means of paying taxes would secure the region’s status as one of the most advanced tech districts in the United States.
It seems that the previous Ohio Treasurer Josh Mandel and current Treasurer Robert Sprague doesn’t share the same opinion.