El Salvador to exclude foreign investors from Bitcoin tax policies
News

El Salvador to exclude foreign investors from Bitcoin tax policies

Saudu Clement
Saudu Clement

El Salvador is doing all it can to see that its Bitcoin Law is a success. Authorities of the countries are now looking to exempt foreign investors from taxes on Bitcoin profits.

Javier Argueta, the legal adviser to El Salvador’s president, disclosed the information that is aimed at encouraging entrepreneurs and investors to migrate into the region.

While speaking with AFP, Argueta stated that “If a person has assets in Bitcoin and makes high profits, there will be no tax. This [is done] obviously is to encourage foreign investment.”

He also revealed that the country was liaising with international agencies to make sure it adheres to financial regulations.

Recall that back in June, President Bukele announced that his government was willing to grant permanent residency to people who invest up to 3 Bitcoin in the economy.

The adoption of Bitcoin as legal tender in the country is proving to be problematic despite being in its early days. It has attracted criticisms from different cycles, including regulators and opposition parties.

Entities such as the International Monetary Fund (IMF) have pinpointed traceability and prevention of illicit financial activities as major areas of concern. The nation’s internal ministers have also raised concerns over the volatile nature of Bitcoin, saying that it could have a negative impact on the payment of salaries.

Apparently, the coming year will determine the role Bitcoin will play in the local economy. A few prominent participants in the crypto space have also aired their views on the matter.

Charles Hoskinson, CEO of Input Output Hong Kong (IOHK), stated that every country needs a Bitcoin strategy. He went on to compliment El Salvador’s decision and emphasized that nothing in human history had grown so quickly.

Meanwhile, citizens took to the streets to protest against the decision. Another citizen group filed a lawsuit against the government in what may be the heaviest counter move so far.

However, the government remains adamant in its decision to adopt the digital asset.

According to BTC PEERS, El Salvador’s official Bitcoin wallet (The Chivo wallet) was launched on September 7, with $30 in Bitcoin offered to new users on the app. The government also bought 400 BTC to fund its airdrop.