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Costa Rican Lawmakers Propose Nixing Almost All Taxes on Bitcoin

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Lawmakers in Costa Rica are working to make the Central American country bitcoin-friendly, with significantly lower taxes on cryptocurrencies.

This week, Costa Rican lawmaker Johana Obando introduced a bill to Congress to regulate the cryptocurrency market in the Central American country.

Current, laser eye meme On her Twitter page, the Crypto Asset Market Act (MECA) “protects individual virtual private property, self-management and decentralization of crypto assets,” without interference from the country’s central bank. “Perfectly matched,” he said. “And.

The idea is to recognize what a digital asset is and enact a law that allows anyone who wants to buy, sell, use and store cryptocurrencies to do so without the interference of the Costa Rican government.

The bill, introduced with Congressmen Luis Diego Vargas and Jorge Dengo, would not allow the government to tax virtual currencies when used to purchase goods. Governments are also not allowed to tax cryptocurrencies in cold storage, and cryptocurrencies produced by mining are not subject to profit tax. However, profits from cryptocurrency trading are subject to income tax under the bill.

In short, legislators want the Costa Rican government to recognize what cryptography is and allow people to keep it and use it freely. Ovando said on Twitter that this would eventually attract foreign investors and fintech companies and create jobs for Costa Ricans.

However, Obando made it very clear that the law is different from El Salvador’s bitcoin law.

Bitcoin is legal tender in El Salvador. That means businesses should accept Bitcoin if they have the technical means.

“Does this bill propose the same as El Salvador? Absolutely not,” Obando said on Twitter. “MECA introduces cryptocurrencies as private cryptocurrencies to be freely accessed and circulated without any obligation on the state to acquire or exchange them.”

El Salvador became the first country in the world to adopt Bitcoin as legal tender. But his Nayib Bukele, president of the Central American country, has been criticized for the law (as well as for personal investments in cryptocurrencies he claims he bought on a whim while naked on his cell phone).

Costa Rica’s bill is similar to one introduced in Panama earlier this year. It’s called cryptography. I wanted Regulating the use of Bitcoin and legalizing Decentralized Autonomous Organizations (DAOs), the country’s president Rejected that.

Elsewhere in Latin America, Paraguay works The Chilean Senate this month approved a fintech bill to regulate the cryptocurrency industry.

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