El Salvador Exempts Foreign Investors From Taxes On Bitcoin Earnings

El Salvador is exempting foreign investors from paying taxes on their Bitcoin earnings, according to Agence France-Presse (AFP).

«If a person has assets in Bitcoin and make large profits, there will be no taxes. This is obviously done to encourage foreign investment, ”Javier Argueta, legal advisor to President Nayib Bukele, reportedly said AFP.

“You will not have to pay taxes on the capital increase or on income,” he would add.

El Salvador’s Bitcoin bet

Last week, El Salvador formally accepted Bitcoin as legal tender after months of waiting.

But despite the accolades from Bitcoin’s staunch, Bukele’s government has come under fire.

Earlier this summer, the World Bank rejected a request from El Salvador to help the country implement its plan to convert Bitcoin to legal tender. organization cited transparency and environmental concerns.

“Although the government has contacted us for assistance on Bitcoin, this is not something the World Bank can support given transparency and environmental gaps,” a World Bank spokesperson said in July.

Likewise, the IMF also said this summer that El Salvador’s adoption of Bitcoin raises a number of “macroeconomic, financial and legal problems.” A week before El Salvador formally recognized Bitcoin as legal tender, the IMF also tweeted that “privately issued crypto assets such as Bitcoin carry substantial risks. Making them equivalent to a national currency is an inadvisable shortcut.

Also read Why is Discord’s Crypto Clash important?

Many Salvadorans have also tried to oppose Bukele’s Bitcoin project, taking to the streets to protest for separating occasions. Locals said last week deciphering the Bukele regime has intimidated, harassed and silenced critics.

On one occasion, law enforcement officers arrested an opponent of the government’s Bitcoin project without a warrant.

“ police kidnapped Mario. He was’ arrested ‘without a warrant,’ said a local businessman. decipher in the moment.

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