El Salvador has made headlines of the cryptocurrency news last week when Bitcoin was recognized as one of the official tenders in the country.
To further promote the use of crypto and attract investments from overseas, the local authorities have decided not to tax the BTC profits of foreign investors.
Javier Argueta, a legal counselor to the president of El Salvador, has announced the government’s decision to the press. Argueta has explained that all crypto transactions of foreign investors won’t be subject to income and capital gains tax.
The government will monitor BTC transactions via Chivo e-wallet
Legislating Bitcoin was a somewhat controversial move from the country’s president Nayib Bukele as there are many concerns about illegal activities and the high volatility of the cryptocurrency.
Javier Argueta has commented on the matter stating that to eliminate the risks the state will trace all crypto activity on the official Bitcoin wallet – Chivo. In case the value of the BTC collapses, the wallet will temporarily block all transactions in this digital currency.
While the government advises citizens to use Chivo for crypto payments, it is not compulsory and El Salvadorians are free to use any other crypto wallet.
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