El Salvador To Exempt Bitcoin Investors From Profits On Capital Gains, Capital Increase

in LeoFinance8 days ago

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According to a news published on Coindesk a couple of hours ago (citing an AFP report from Friday) El Salvador will exempt Bitcoin investors from profits on capital gains and capital increase. Just less than a week ago, El Salvador made Bitcoin legal tender in a world first move.

“If a person has assets in bitcoin and makes high profits, there will be no tax,” Javier Argueta, legal adviser to President Nayib Bukele, told AFP. “There will be no taxes to pay on either the capital increase or the income.”

Interestingly, he added that transactions would be halted temporarily if its value (Bitcoin value, I presume) were ever to collapse.

Still trying to wrap my head around the last sentence, but maybe there are things that I don't know yet about how they will implement this measure. I hope he didn't mean he will stop Bitcoin from trading, because that's not only impossible, but will reveal a very basic level of understanding of crypto at the highest country level.

Anyway, all in all, good news to start the Monday.

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A debatable and controversial decision, to say the least.

My opinion is that in, and by itself, making Bitcoin legal tender was a very audacious and useful (from an economical point of view) move. It's clear now they want to attract even more investors in the country, because they are already Bitcoin-friendly.

It remains to be seen how exactly they will implement this exemption, for how long, under what conditions, etc, but all in all it's a good move too.

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I just saw the fact that this decision triggered a lot of social and political turmoil there... And a lot of violence on the streets as well. Hopefully, in the future the status quo there will get better.

That's will be invincible or inevitable where you have never charged tax by the law enforcement while you gaining profit or capital, it will be sure heaven of cryptocurrency.