The Arkansas State House has taken significant steps towards regulating cryptocurrency mining within the state by passing two bills that could potentially shape the future of the industry. These bills, although not yet enacted into law, represent a crucial development in the ongoing discourse on the impact of crypto mining operations.
During a Senate hearing on April 17, legislators discussed various issues concerning cryptocurrency mining, such as noise pollution, foreign ownership, and the proximity of mining facilities to residential areas. The approval of two out of eight bills presented to the House on Wednesday indicates a growing consensus among lawmakers to tackle these concerns, despite the Senate’s recent endorsement of only one bill related to cryptocurrencies.
One of the bills, Act 851, also known as the Arkansas Data Centers Act of 2023, aims to establish regulatory frameworks for Bitcoin mining activities in the state. This proposed legislation intends to offer guidance to miners while protecting them from discriminatory regulations and taxes. This initiative follows recent controversies in other regions, like Sweden, where crypto miners have faced allegations of tax evasion.
In Sweden, the Tax Agency uncovered discrepancies in the tax filings of 21 crypto-mining companies between 2020 and 2023, prompting investigations into potential tax evasion practices. The investigation revealed that several mining firms had provided inaccurate or incomplete information to exploit tax benefits, leading to unpaid taxes amounting to over 990 million Swedish krona (approximately $90 million USD).
Tax authorities have instructed these crypto mining companies to settle their outstanding tax obligations, including unpaid value-added tax (VAT) and tax surcharges. While some companies have challenged the tax assessments, questioning the validity of the demands, the administrative court has largely upheld the tax claims against the majority of the firms, indicating a crackdown on tax evasion in the crypto sector.
Digital Assets Desk