Which States in the United States Are the Worst for Crypto Investors?
These five states are the least crypto-friendly in the United States.
What makes a state in the United States a good (or poor) place for a crypto investor? Are you seeking for robust investor safeguards? Or do you want greater flexibility to invest in whatever cryptocurrency token you desire? Are there any Bitcoin (BTC) ATMs or other crypto-friendly infrastructure in your state?
We examined a variety of characteristics, such as which states have the strongest crypto legislation and where interest in cryptocurrency is high or low, to determine which states in the United States are best and worst for crypto investors. Here are the five states that are the worst for bitcoin.
1. New York
It’s safe to say that bitcoin has a love-hate relationship with New York. Its next mayor, Eric Adams, wants the state to “go big” on cryptocurrency, and it has its own token, NewYork Coin. The financial capital of the United States has held a number of major crypto conferences in recent years, and according to Bloomberg, it also ranks high in terms of the number of crypto hiring this year.
However, New York’s crypto regulations are among the most stringent in the country. Because of the strict limitations, New Yorkers, for example, are unable to mine NewYork Coin. To operate in the state, cryptocurrency exchanges must get a BitLicense, which firms say may be costly and time-consuming. Furthermore, the New York Attorney General’s office is extremely aggressive in prosecuting criminal actors.
You may argue that criticizing Tether (USDT) for failing to hold sufficient funds in reserve to sustain the currency it created is a positive thing. Tether is a stablecoin that is backed by US dollars, however an inquiry by the New York Attorney General revealed that this was not always the case. “Tether’s statements that its virtual currency was completely backed by US dollars at all times were a deception,” stated Attorney General Letitia James.
On the other hand, just about 30 crypto firms are permitted to function in New York, and many coins are not permitted to be traded there. In addition, New York has just 181 crypto ATMs for a population of 19 million, which is a disadvantage in terms of crypto-friendliness.
Hawaii enacted a law in 2016 requiring crypto platforms to have comparable cash on hand to back the crypto purchased by Hawaii citizens. As a result, well-known exchanges like as Coinbase and Robinhood no longer offer cryptocurrencies on their platforms.
However, the state followed up in August 2020 with a two-year trial program that permitted select exchanges to operate while exempting them from this restriction. Following the pilot’s success, Iris Ikeda, Commissioner of Financial Institutions at the Hawaii Department of Commerce and Consumer Affairs, stated that she is working on new, more user-friendly cryptocurrency regulations.
Because of their stringent regulations, Hawaii and New York entered our list of the worst crypto states. Vermont, on the other hand, does not have many crypto-specific bills. It’s also worth noting that there are no crypto ATMs. In reality, it is uninterested in cryptocurrencies at all.
According to Crypto Head’s research of crypto-ready states, Vermont is towards the bottom. It is the only state that does not have any Bitcoin ATMs. Between July 2020 and June 2021, there were only 514 crypto-related Google searches per 100,000 persons. In comparison, top-ranked California had a number of 977.
Alaska ranks last on Crypto Head’s ranking of crypto-ready states. When the study was released, there were just six crypto ATMs and 588 crypto-related internet searches per 100,000 persons.
Nonetheless, Coinme deployed 15 Coinstar machines in Alaska grocery shops at the beginning of December. Alaskans may now purchase Bitcoin at Carrs and Safeway locations in Anchorage, Fairbanks, and Juneau. In addition, Alaska is exploring utilizing blockchain technology to increase vote security in elections.
5. West Virginia
West Virginia appears to have the least interest in cryptocurrency in the United States, with 349 Google crypto queries per 100,000 persons each year. However, in terms of crypto ATMs, it is at the top of the list. West Virginia has 336 cryptocurrency ATMs, or 18.7 per 100,000 inhabitants.
Surprisingly, West Virginia nearly outlawed cryptocurrency earlier this year. While overhauling its criminal code, the previous version had two clauses that made trading or using cryptocurrency a misdemeanor. Following CoinDesk’s inquiries, this text was deleted at the last minute.
These five states are the least crypto-friendly in the United States. What makes a state in the United States a good (or poor) place for a crypto investor? Are you seeking for robust investor safeguards? Or do you want greater flexibility to invest in whatever cryptocurrency token you desire? Are there any Bitcoin (BTC) ATMs…