Rhode Island introduces bill to exempt small Bitcoin transactions from tax

The Rhode Island state legislature has introduced a bill to exempt small Bitcoin transactions from income tax in an effort to reduce the tax burden on everyday transfers, CryptoBriefing reported. The proposed legislation would make Bitcoin sales and trades of up to $5,000 per month tax-free and exempt up to $20,000 in annual transactions from income tax. The bill, which defines Bitcoin as a digital, decentralized currency based on blockchain technology, is designed to provide tax incentives that encourage residents and local businesses to use the cryptocurrency in daily life.