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Virginia, US, introduces bill to protect digital asset mining rights

by SuperiorInvest

The Virginia State Senate has introduced legislation defining regulations for digital asset mining and transactions and their treatment under tax laws.

Senator Saddam Azlan Salim, the youngest member of the legislative body at 34, proposed Senate Bill No. 339 on January 9. The Senate is discussing the legislation and, if approved, it will go to the House of Delegates for consideration. and then become law.

The bill exempts individuals and companies involved in digital mining activities from obtaining money transmission licenses. It also protects miners from discrimination by prohibiting industrial zones from banning digital asset mining or imposing more restrictive noise ordinances than those in place in industrial zones.

“No license shall be required under this chapter for any person who engages in commercial 37 domestic digital asset mining, digital asset mining, or digital asset mining activities, as those terms are defined in § 38 15.2-2288.9.”

Additionally, the legislation exempts issuers and sellers of digital assets from securities registration requirements if certain conditions are met, for example, the digital asset is not considered an investment contract:

“An issuer or seller of a digital asset shall be exempt from the securities registration requirements of this chapter if (i) the digital asset cannot be considered an investment contract, (ii) the issuer or seller of the digital asset did not market the asset digital asset to the initial purchaser as a financial investment, and (iii) the issuer or seller of the digital asset takes other reasonable precautions to prevent an initial purchaser from purchasing the digital asset as a financial investment.

Companies that offer mining or gambling services cannot be classified as “financial investment” under the bill. However, they must submit a notice to qualify for the exemption.

In addition, the legislation encourages the use of cryptocurrencies for daily transactions by offering tax benefits. The bill proposes that starting January 1, 2024, individuals can exclude up to $200 per transaction from their net capital gains for tax purposes. This exclusion applies to profits derived from the use of digital assets for the purchase of goods or services.

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