Categories: Market

Bitcoin investors are said to be tax-exempt in El Salvador

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.

Related: El Salvador’s largest bank partners with Flexa for bitcoin payments

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.

.

.

CoinX

Recent Posts

FLOKI Announces Dubai Takeover with WAFI Mall Campaign

Miami, Florida, 5th November 2024, Chainwire

20 mins ago

BlockDAG X1 App Receives Huge Response From Community, Hiting Over 200K Users! Latest on Bitcoin & Chainlink Prices

Want to learn about Bitcoin and Chainlink's prices? See why BlockDAG with its X1 app…

41 mins ago

Bitcoin Mining Difficulty Tops 100T Hash for the First Time

New ATH for Bitcoin’s average hashrate, combined with Bitcoin mining difficulty surpassing 100 trillion hashes,…

1 hour ago

US Presidential Election Drives Bitcoin Price Back to $70,000

Bitcoin's price rose 3% to $70,200, influenced by excitement surrounding the US presidential election.

2 hours ago

Xinteria Surpasses $1 Billion in Trading Volume, Unveils Innovative Market-Making Technology

NY, United States of America, 5th November 2024, Chainwire

2 hours ago

Top DePIN Crypto Projects With Huge Airdrop Potential

This Coincu's article presents a curated list of the top DePIN crypto projects with airdrop…

2 hours ago

This website uses cookies.