Mar 29, 2020 08:00 UTC
Mar 29, 2020 at 08:00 UTC
Why Crypto Traders and Miners are Heading to Portugal?
Digital assets of the existing realm of finance have come across several challenges all over the world. Most of the nations are still struggling with how the cryptocurrencies can be defined and regulated. Lastly, there is no uniformity as every individual country has developed its unique approach.
Data and transparency are considered as the best tools in the market at present as it regulates certainty and institutional demand. Some of the countries such as the United Kingdom and the United States are taking advantage of this and are trying to build a good amount of tax and regulatory framework. India has decided to lift its crypto ban and engage with the sector.
In most countries, cryptocurrency is still legal, as Japan is the sole example to be referred to in terms of progressive legislation. In 2017, the Japanese government accounted for the title of the first country to recognize Bitcoin as a currency and to grant official licenses to exchanges. This may witness a Bitcoin market with tremendous growth across the globe.
There are many more countries having crypto-friendly tax policies and regulations but not all pro-crypto countries like Portugal. Most countries are taking a charge on the normal capital gains tax for cryptocurrency profits such as the United Kingdom and the United States.
Florian Wimmer, the CEO, and Co-founder of Blockpit- a company offering the services of portfolio tracking and tax calculations for cryptocurrencies states that in most countries, cryptocurrency is sensed as economic goods, for example as a property and is taxed after existing regulation for such assets. This concludes that every single transaction is a taxable event.
Crypto taxes in Portugal are friendly as it allows retail traders to benefit from a zero-VAT policy. In the recent past, the outlook on Bitcoin and its taxation and regulation was uncertain or negative. In 2013, Banco de Portugal – the country’s central bank – issued a statement warning users of the risks of crypto trading, “protection fund for depositors/investors”.
He dropped a statement that as there is no guaranteed central entity of the definiteness and irrevocability of payments, Bitcoin cannot be considered as a secure currency. There is no security in its acceptance as a payment method.”