Venezuelans To Face 20% Tax on Crypto Transactions

Crypto tax is trending across the globe as more and more country are revealing their crypto taxation policy. The latest addition to list is Venezuela, where the government has announced a levy of 20% Tax on all crypto transactions.

Why crypto tax?

Several countries have already introduced tax policies regarding Crypto gains since the beginning of 2022.

JUST IN: Venezuelan government has approved of a new 20% tax for #Bitcoin and #cryptocurrency transactions. 🇻🇪

— Watcher.Guru (@WatcherGuru) February 8, 2022

As per reports, Venezuela’s National Assembly held a second discussion session on Thursday regarding a new draft bill that targets taxes on “large financial transactions” in cryptocurrencies like Bitcoin.

In the second discussion held over the bill last week, the Venezuelan government reportedly gave its approval. Now, requiring local firms and individuals will both be required to pay up to 20% for operations carried out using any cryptocurrencies except Venezuelan Bolivar along with the oil-backed cryptocurrency El Petro.

The purpose of this law is to give greater incentive and confidence to the use of the national Bolivar as it has lost almost 73% of its value in the past year alone.

Crypto Tax wave or Global adoption

The cryptocurrency ecosystem which debuted back in 2009 has witnessed a huge spike in adoption all around the globe in the past few years. Many nations, tax authorities, and regulators are still debating over how to control it, while some countries have already made up their minds.

Countries like the U.S. and Canada have legally permitted trading in virtual currencies, on the other hand, nations like China and Russia have prohibited it by the law. A country like El Salvador has already legalized any cryptocurrency, including bitcoin, for use as a legal tender, while recently, India recognised Bitcoin and other cryptocurrencies during the Budget session and announced a flat 30% tax on income generated from it.