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While the public has yet to see an all-country, global adoption of cryptocurrency, countries that are willing to take risks to reap the benefits of crypto are increasing in numbers. Here are the latest updates on countries backing cryptocurrency.
Portugal: No Tax on BTC Capital Gains
Portuguese Tax Authorities (PTA) clarified that the buying and selling of crypto would not be subject to capital gains tax or value-added tax (VAT).
In a PTA position released in 2016, capital gains from the sale of cryptocurrencies are not taxable under the Personal Income Tax Code, under Category E, which covers dividend and interest income. In addition, crypto sales are also not subject to being taxed within the sphere covered by Category G (capital gains).
However, entities that provide crypto-related services, as a professional or a business, are taxed on capital gains between 28%-35%.
With this reminder, Portugal continues to stand its ground as a crypto-friendly country, joining other European countries like Germany, Switzerland, and Malta.
El Salvador GDP Increased after Making BTC Its Legal Tender
El Salvador saw an increase in its Gross Domestic Product (GDP) after making Bitcoin its legal tender, as reported by Dennis Porter.
In his tweet, Bitcoin correspondent, Dennis Porter, claimed that El Salvador’s GDP shot up at 10.3% and that Bitcoin adoption “brings jobs, development, and investment.”
True enough, a report showed that the El Salvador GDP is projected to reach around $26.80 billion from its 2021 trend of around $25.60 billion. Although reports have not specified if this was caused by the move to make BTC a legal tender, El Salvador’s financial authorities continued to insist that the crypto would be an asset to the country’s economy.
El Salvador made headlines last year in September after announcing it would make Bitcoin an official currency.
Ukraine Trades More Crypto Than Fiat
According to an article, Ukraine is processing more cryptocurrency transactions a day than its fiat currency, hryvnia.
This development is in relation to the Ukrainian parliament’s recent approval of the legislation that legalizes cryptocurrencies. The parliament is now preparing regulatory and management frameworks for crypto like Bitcoin.
This news came via Twitter from Ukraine’s Deputy Prime Minister and Minister of Digital Transformation, Mykhailo Fedorov.
Important to note is, unlike El Salvador’s legislation, the Ukraine bill does not recognize cryptocurrencies as legal tender. However, this development is considered a win as entities involved in the crypto business are reassured of proper regulation.
Meanwhile, countries like India have yet to fully embrace cryptocurrency, imposing heavy taxes and calling for the ban of the use of digital assets.