Future of Ohio Bitcoin program, deemed illegal, in limbo

COLUMBUS, Ohio (AP) — Resuming Ohio’s attempt to allow cryptocurrency in certain tax payments is up in the air after the state’s top lawyer found a Bitcoin program launched by the former state treasurer was illegal.

Republican Attorney General Dave Yost’s Nov. 5 opinion found then-Treasurer Josh Mandel (man-DEHL’) skirted state law when he launched OhioCrypto.com last year for paying business taxes.

Yost found that Atlanta-based BitPay, the third-party processor that converted bitcoins to U.S. currency, was functioning as a “financial transaction device.” That meant Mandel was required to use a competitive selection process before hiring them.

Treasurer Robert Sprague (sprayg), a fellow Republican who succeeded Mandel in January, abruptly shut down the site last month after an internal review raised issues. The Board of Deposit he chairs must now decide how to proceed.