The El Salvador government is reportedly exempting investors from paying capital gains tax and income tax on Bitcoin (BTC), according to a legal adviser to the president.
Javier Argueta, legal advisor to President Nayib Bukele, wants to encourage foreign investment through massive tax breaks for Bitcoin, Agence France-Presse reported on September 10th.
“If you have assets in Bitcoin and are making high profits, you don’t have to pay taxes. This is clearly being done to encourage foreign investment, ”Argueta said, adding that El Salvador would not tax“ capital gains or income ”.
According to reports, Argueta noted that the Salvadoran government will actively monitor Bitcoin transactions on El Salvador’s official BTC wallet, Chivo, in an attempt to combat the potentially illegal use of the cryptocurrency. “We are working on a number of recommendations from international organizations to combat money laundering,” he said.
The Chivo Wallet will also temporarily suspend Bitcoin transactions in the app if the value of Bitcoin falls in order to mitigate the effects of strong fluctuations or price fluctuations.
Last Tuesday, El Salvador became the first country in the world to accept Bitcoin as legal tender and urged all local merchants to accept BTC as payment. Working with global companies such as the Bitso crypto exchange and Silvergate Bank, El Salvador has launched an official BTC wallet called Chivo that allows users to convert BTC transactions into US dollars or withdraw money from a special ATM with no transaction fees can.
As already reported, the Chivo wallet was temporarily dismantled on the start day for maintenance work. According to several reports on social media, some Chivo wallet users are still facing major problems trading or withdrawing money from Chivo after El Salvador repaired the crypto wallet last week.
.
.
London, united kingdom, 22nd November 2024, Chainwire
Robinhood Exec Dan Gallagher declined consideration to lead the SEC, affirming his commitment to Robinhood…
Discover why Qubetics, Fantom, and Immutable X are the best cryptos to buy in November…
Sui Foundation partners with Franklin Templeton Digital Assets to enhance DeFi solutions on the blockchain.
See how Bitcoin confronts $99K resistance, Avalanche enjoys a 23% rise, & BDAG achieves a…
Gros Islet, St. Lucia, 22nd November 2024, Chainwire
This website uses cookies.