Bitcoin investors reportedly exempt from taxes in El Salvador

According to reports, the government of El Salvador will exempt investors from capital gains tax and income tax on Bitcoin (Bitcoin), according to the president’s legal counsel.

Agence France-Presse, President Nayib Bukele’s legal counsel Javier Argueta (Javier Argueta) is seeking to encourage foreign investment through significant tax breaks on Bitcoin Report September 10.

“If a person owns Bitcoin assets and earns high profits, there will be no taxation. This is obviously to encourage foreign investment,” Algerta said, adding that El Salvador would not impose “capital increase or income”. taxi.

According to reports, Argueta pointed out that the Salvadoran government will actively track Bitcoin transactions on Chivo, the official BTC wallet of El Salvador, in order to combat possible illegal use of cryptocurrencies. “We are implementing a series of anti-money laundering recommendations from international agencies,” he said.

If the value of Bitcoin plummets, Chivo Wallet will also temporarily stop Bitcoin transactions on the app to minimize the impact of extreme fluctuations or price fluctuations.

related: El Salvador’s largest bank partners with Flexa for Bitcoin payments

Last Tuesday, El Salvador becomes the first country in the world to adopt Bitcoin As legal tender, all local merchants are required Accept BTC as payment method. Cooperate with global companies such as Bitso cryptocurrency exchange and Silvergate Bank, El Salvador launched an official BTC wallet called Chivo, Allowing users to convert BTC transactions into U.S. dollars or use special ATMs to withdraw money without transaction fees.

As previously reported, the Chivo wallet was temporarily offline for maintenance on the day of its release.According to several social media reports, it is said that some Chivo wallet users are still experience The main problems of trading or exiting Chivo afterwards El Salvador fixes its crypto wallet last week.