US lawmakers introduced virtual currency tax fairness act to expand its use: Crypto Moves

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Sun, 2022-02-06 13:41

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Sunday, raising by 0.44 percent to $41,682 at 1:19 p.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $3,017, up by 0.08 percent, according to data from Coindesk.

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Several US lawmakers have introduced the Virtual Currency Tax Fairness Act of 2022 to enhance the legitimacy of cryptocurrency on Thursday.

The bill would create a workable structure for taxing purchases made in virtual currency, also known as cryptocurrency, the lawmakers explained.

It will also expand the use of cryptocurrency for payments and enhance its legitimacy in the digital economy, according to bitcoin.com.

Lawmakers emphasized that the current law makes daily use of virtual currency almost impossible, hinders people from using it, and hinders the growth of their digital economy.

The Virtual Currency Tax Fairness Act would exempt personal transactions made with virtual currency when the gains are $200 or less, the lawmakers said.

Venezuela

Meanwhile, the Venezuelan government has approved a new tax that will affect transactions and payments made in cryptocurrency and foreign currency.

The tax which is called the large financial transaction tax, aims to incentivize the use of the national currency that has lost its relevance in a multi-currency environment like the one present in Venezuela in the last years.

The tax states that any transactions or payments made in foreign currencies or cryptocurrencies, without a limit quantity, will have to pay up to 20 percent over each movement, depending on the nature of it and the companies or persons making them.

Jose Guerra, a Venezuelan economist, believes that this will be a hit to the pocket of the Venezuelans that use foreign currency and cryptocurrencies to store their savings.

“It must be recognized that foreign currency has solved part of the cash problems, reserves of value and savings of everyone in the country. Also crypto assets, to a certain extent. Making this decision is trying to privilege one means of payment over another,” Guerra said.

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