Blockchain is quickly gaining momentum in terms of both publicity and funding. The expected average investment for blockchain projects in 2017 is $1 million dollars, and 69% of the world’s banks are already experimenting with this technology. With industry adoption already occurring and mainstream adoption quickly upon us, there are a lot of legal issues to be sorted through, especially surrounding what brought blockchain tech into the spotlight–cryptocurrencies like Bitcoin.
At the time of this writing, several major blockchain-related bills have been passed to help solidify legal standings on blockchain across two different states.
One bill, introduced by Arizona’s governor Doug Ducey, was passed and stated that verified the validity of blockchain-secured signatures, records, and contracts.
In June 2017, Nevada’s governor Brian Sandoval signed a bill into law which forbids local governments from charging taxes on blockchain use and bans them from requiring any sort of certification for using the technology.
This makes Nevada the first state to place any sort of ban on blockchain taxation.
In addition, the law, similar to that which was passed in Vermont, also makes blockchain records admissible in court according to state law.
These statutes have high importance for the continual growth of blockchain and cryptocurrency projects.
Limiting taxation on blockchain projects can have a major impact on the financial side of the technology which includes such noteworthy projects as Bitcoin and Ethereum.
As Forbes explains, bitcoin has risen well beyond gold and other traditional forms of investment, especially for those who are unconvinced about the stability of the US economy as well as other governments worldwide who have been shown to be manipulating their currencies, as was the case in India and Venezuela.
While legal matters surrounding money are common, and additional veracity of blockchain as a suitable method of contracting and exchanging value is beneficial to the financial world, blockchain’s use has spread well beyond finance.
In regards to making blockchain contracts a court-worthy piece of evidence, this also further solidifies projects that make use of blockchain to provide things like records of copyright. Being able to verify intellectual property in a court of law could greatly benefit companies like Binded, whom we have written about previously.
Other major players such as Comcast and IBM are looking into blockchain technology to solve issues in advertising, trucking, and even energy. Taxation protection for such projects may result in faster, beneficial results for everyone involved–at least in Nevada.
This also offers a great way to boost the economy in Nevada which will likely see an influx of blockchain companies who favor the state for the protections it offers.
Nevada is already renowned for their laws surrounding gambling, and cryptocurrency casinos are becoming increasingly popular.
The addition of protections for blockchain companies in state law offers further proof of Nevada’s open-minded nature and welcoming attitude toward new technology. Perhaps Nevada will become a haven for blockchain and cryptocurrency in the same vein as Silicon Valley of California became a breeding ground for technological development.