Bitcoin investors would be exempt from taxes in El Salvador

The government of El Salvador would exempt investors from paying capital gains tax and income tax on Bitcoin ( BTC ), according to a pres...



The government of El Salvador would exempt investors from paying capital gains tax and income tax on Bitcoin (BTC), according to a presidential legal adviser.

Javier Argueta, Legal Advisor to President Nayib Bukele, Seeks to Encourage Foreign Investment Through Significant Bitcoin Tax Relief, Agence France-Presse reported September 10.

“If a person owns Bitcoin assets and makes high profits, there will be no tax. This is obviously done to encourage foreign investment, ”said Argueta, adding that El Salvador will not impose any tax on“ neither the increase in capital nor the income ”.

Argueta reportedly noted that the Salvadoran government would actively track Bitcoin transactions on El Salvador’s official BTC wallet, Chivo, to combat the potentially illegal use of the cryptocurrency. “We are implementing a series of recommendations from international institutions against money laundering,” he said.

The Chivo wallet would also temporarily halt Bitcoin transactions on the app if the Bitcoin value collapsed in order to minimize the impact of extreme volatility 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 adopt Bitcoin as legal tender, obliging all local traders to accept BTC as a payment method. In cooperation with global companies like Bitso crypto exchange and Silvergate Bank, El Salvador launched the official BTC wallet known as Chivo, allowing users to convert BTC transactions to US dollars or withdraw them using a special ATM, with no transaction fees.

As previously reported, the Chivo wallet was temporarily retired for maintenance on launch day. According to several reports on social networks, some users of the Chivo wallet have always been experience major problems with the transaction or withdrawal from Chivo after El Salvador repaired the crypto wallet Last week.