Legal Crypto In Ohio

Overview of Cryptocurrency Legality and Regulation in Ohio

Legality of Cryptocurrency in Ohio

Ohio does have some favorable laws for cryptocurrency, and it is legal in the state, acceptable for transactions and investments. Ohio became the first U.S. state to allow some taxes to be paid in Bitcoin for businesses in a program that began in December 2018 with a partnership with BitPay. SB 57 allows Bitcoin to be a state investment with a required holding period of five years, a unique policy that has not been commonly adopted in other states. The Blockchain Basics Act (HB 116) filed in February 2025, which would exempt digital asset payments from state taxes, safeguard cryptocurrency mining and custody rights and examine the potential for state retirement fund investments in digital asset exchange-traded funds (ETFs). HB 18 allows the state to invest in more cryptocurrencies, reaffirming Ohio’s forward thinking attitude.

Regulations on the Crypto Market

Ohio Warns Against Risks in Unregulated Markets like DeFi, Urges Investor Education The Ohio Department of Commerce and Division of Securities say there are risks in unregulated markets including decentralized finance (DeFi). On the federal level, if it’s in Ohio based crypto transactions have to get SEC attention, and the IRS receives capital gains taxes. Exchanges are required to follow Anti Money-Laundering (AML) and Know Your Customer (KYC) laws under the Bank Secrecy Act. DeFi and non-fungible tokens (NFTs) do not have any state specific regulations, exposing them to risks of fraud and market instability.

Ohio Cryptocurrency Legislation

Popular Cryptocurrency Exchanges and Methods of Exchange

Ohioans also have local exchanges like Coinbase, which has a user-friendly platform that is simple to use, as well as Binance. US, providing low fees and a range of digital assets; Kraken, which has advanced trading options and low costs; and Gemini, a firm that has focused on being compliant with state and federal regulations. One of Ohio’s unique offerings is that lawmakers approved the state’s Bitcoin tax payment program through a partnership with BitPay, which converts Bitcoin to U.S. dollars that are submitted for business tax payments — unlike in most other places. P2P platforms such as LocalBitcoins and Paxful support direct trades, but are riskier, as they don’t accept any oversight. Cash-to-crypto purchases can be made, though only of high fees, at cryptocurrency ATMs such as ones located in Columbus and Cleveland.

DeFi Market

DeFi, which provides intermediary-free financial services powered by blockchain, is available in Ohio, though it is unregulated at the state level. Uniswap (trading), Aave (lending) and Compound (borrowing) are popular platforms. The Ohio Division of Securities warns of risks, from hacks and scams to lack of central recourse. The tax breaks for digital asset payments in HB 116, for example, could indirectly assist DeFi transactions, but holes in regulation remain that could leave investors vulnerable.

Market for the trading of Non-Fungible Tokens (NFT)

NFTs trading in Ohio are liable to federal capital gains taxes, but there are no OH-specific exemptions besides the state threads offered in HB 116 which covers digital asset payments. NFT ownership doesn't automatically include intellectual property rights, leading to potential legal implications. NFTs are created and traded in marketplaces like OpenSea, Rarible and Foundation. The Ohio Department of Commerce cautioned of volatility and scams, with no state oversight of the limited marketplace allowed. Ohio’s one-of-a-kind Blockchain Basics Act, for example, could indirectly support NFT transactions by exempting digital asset payments from Ohio state taxes (which could in turn spur NFT commerce).

Ohio’s Blockchain Corridor Initiative

The State of Ohio is building the Ohio Blockchain Corridor, a state-supported initiative centered around shaping Ohio as a world leader in blockchain and cryptocurrency technology. It's a program, run through cities such as Columbus and Cleveland, intended to attract blockchain startups, support research, generate jobs and provide tax incentives and grants to companies developing blockchain solutions. The program fits Ohio’s pro-cryptocurrency policies, such as HB 116, and being one of the first states to accept Bitcoin for tax payments, and helps distinguish Ohio from other states by placing cryptocurrency front-and-center in its economic development plans.

Useful Information

• Legality: Cryptocurrency is legal in Ohio under SB 57, HB 116, and HB 18.
• Pay Your Tax Bill With Bitcoin: Ohio became the first U.S. state to allow businesses to pay taxes with Bitcoin through BitPay in December.
• State Investments: SB 57 establishes Bitcoin as a state reserve asset; HB 18 expands investment possibilities to cryptocurrency in general.
• Tax Break: HB 116 creates a tax-free exemption for digital asset payments at the state level as of February 2025.
• Ohio Blockchain Corridor: Novel project to lure blockchain start-ups with tax breaks and grants to innovate in Columbus and Cleveland.
• Notable exchanges include Coinbase and Binance. US, Kraken and Gemini that are secure places to trade.
• How to Exchange: BitPay, Peer to peer (LocalBitcoins, Paxful) and cryptocurrency ATMs (in big cities).
• DeFi Risks: The unregulated platforms (Uniswap, Aave, Compound) all have hack or scam risks.
• NFT Taxation: There are federal capital gains taxes and HB 116’s tax exemptions may help with taxes for NFT sales.
• Regulatory Vacuums: There are no state laws for DeFi and NFTs, thus exposing investors to such risks.

Conclusion

Ohio’s pro-blockchain legislation such as HB 116 – the Blockchain Basics Act, Senate Bill 57 and House Bill 18 position the state as a trailblazer in adopting digital assets. The first of its kind Bitcoin tax payment project and the Ohio Blockchain Corridor signify Ohio’s leadership in applying cryptocurrency to public finance and economic development. Exchanges such as Coinbase and Kraken operate on a centralized structure for safe trading, but BitPay, P2P and ATMs offer a variety of exchange options. But the wild west of unregulated DeFi and NFT markets are full of dangers from hacks, scams, and legal gray areas. Ohioans can use the state’s friendly approach to their advantage, seek secure platforms and remain knowledgeable about regulatory updates to successfully tread the crypto waters.