New York lawmaker introduces bill to tax digital asset sales and transfers

On Wednesday, New York Assembly lawmaker Phil Steck introduced a bill to tax the sale and transfer of digital assets. The legislation would apply to virtual currencies, digital coins, digital non-fungible tokens, and other similar assets.

The Democrat official introduced Bill 8966 to the state’s Assembly, seeking to add a 0.2% excise tax on digital asset transactions. The legislation would take effect from September 1 if passed and apply to all sales and transactions of cryptocurrencies and NFTs.

Steck’s legislation seeks to bring tax revenue to New York City

Steck believes the new law could bring significant tax revenue for New York City. The bill seeks to tax digital asset payments and potentially generate compliance headwinds for exchanges, traders, and DeFi protocols operating in the state. 

As previously reported by Cryptopolitan, the state is one of the largest financial and fintech hubs. It has already embraced digital assets by purchasing billions worth of tokens and offers crypto-based financial products.

The bill awaits approval from a committee before a voting process through the full Assembly. It would then pass through to the Senate for approval. It would move to the governor, who could pass or veto the legislation if approved.

U.S. laws allow for both the federal and state governments to introduce levied taxes. States such as Texas have scrapped corporate and income taxes on digital assets in a bid to attract companies looking to mitigate their tax bills.

According to Bloomberg Tax, only a few states have guidance on how their tax authorities should approach digital currencies. The report also reveals that states like New York and California regard virtual assets as cash, while states like Washington exempt crypto from taxes. 

New York is home to crypto company titans due to its status as a global finance center. Many companies are headquartered in the state, including stablecoin issuers Circle Internet Group and Paxos, as well as crypto exchange Gemini and analytics firm Chainalysis. 

The state also pioneered comprehensive regulatory laws for crypto from as early as 2015. As previously reported by Cryptopolitan, New York introduced the BitLicense, which burdened a flurry of companies and caused them to leave New York. The firms that stayed, like Circle, Paxos, and Gemini, embraced crypto regulations and thrived.

The Internal Revenue Service (IRS) urged U.S. taxpayers to report all crypto-related income on their tax returns. It also warned of accrued interest and penalties for individuals who failed to report income from digital asset transactions accurately.

According to the government agency, the sale, swap, or spending of digital assets is liable for tax. Income generated from crypto held for a year or less also faces income tax of around 10%-39%, while those held longer than 12 months are liable for capital-gains rates of between 0% and 20%.

Other countries tap into taxing crypto 

Other countries are also joining the race to introduce a digital asset tax as cryptocurrencies gain global adoption. Thailand implemented a five-year personal income tax exemption on virtual asset gains through licensed platforms. 

The Thai government initiated the law from January 2025 through December 2029. It also argued that digital assets could generate over 1 billion baht in additional tax revenue despite the exemption. 

Indonesia also introduced digital transaction tracking, revealing that revenue from virtual assets surged in 2024 by 181% to $38 million. The country’s transaction volume of $39.67 million fueled much of the gains. It also recorded a $6.97 drop in revenue last month due to market volatility. 

Japan also announced digital asset income taxes of up to 55% on profits from digital asset transactions. The country’s Blockchain Association surveyed 1,500 adults and found that 84% of crypto holders would get involved in digital assets if the government implemented a flat 20% capital gains tax. 

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