Just three days ago that the country officially recognized $Bitcoins as a lender tender, and becomes the first country in the world to do that, El Salvador government will exempt foreign investors from taxes on profits on bitcoin speculation in the country, a government adviser said on Friday after it became the first to recognize the cryptocurrency as legal tender.
"If a person has assets in bitcoin and makes high profits, there will be no tax. This (is done) obviously to encourage foreign investment," Javier Argueta, legal adviser to President Nayib Bukele.
"There will be no taxes to pay on either the capital increase or the income."
Trading cryptocurrency without being taxed will increase the rate of adoption of crypto in the country.
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