New Costa Rican Bill Proposes Tax Exemption for Bitcoin Transactions
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Loading... - Genevieve Allard
- 31 Oct 2022
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Costa Rican legislator Johana Obando has proposed a new bill that seeks to regulate the crypto market in the nation by amending taxation laws. The bill was introduced with support from congressmen Luis Diego Vargas and Jorge Dengo. According to Obando’s tweet (translated), the bill will “promote the digital economy and the use of crypto assets.”
Dubbed the Cryptoassets Market Law (MECA), Bill number 23,415 would “give protection to individual virtual private property, to the self-custody of crypto-assets and to decentralization” without intervention from the country’s central bank, but in “perfect harmony” with it.
Further, the bill prevents the government from taxing cryptocurrency while it is in cold storage and exempts mined cryptocurrency from profit tax. However, the law would impose income taxes on cryptocurrency trading profits.
The bill also defines bitcoin and other cryptocurrencies as virtual private currency and safeguards the ownership of such assets. With the proposal, lawmakers are hoping to draw in more capital by providing investors with added certainty and security in the crypto asset space.
Obando added that the bill also guarantees “banking interoperability of cryptocurrencies through public and private banks in the national territory,” implying that banks may serve as custody providers, wallet providers, and even cryptocurrency exchanges. Read More...
