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2 August 2021
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Regulation

Venezuela presents new framework for cryptocurrency tax

The economically unstable Venezuela has been trying to turn the tide for a long time. That is how it launched the Petro (XPD), a state-supported cryptocurrency. On 7 January, the Venezuelan government also presented a decree on crypto-taxes.

Decree number 3719 contains the framework with explanations and reasons why the new framework is introduced. According to the decree, this is an economic emergency. All Venezuelans who have traded in crypto or foreign currency have to pay taxes in the currency with which they have acted.

That the tax should not be paid in the national fiat currency, the bolivar, is not surprising. The value of the bolivar is in fact very low and only seems to decrease in value as a result of hyperinflation.

Due to hyperinflation and economic difficulties, Venezuela introduced the Petro in August 2018. With the introduction, the government hopes to limit the damage and perhaps even to repair it. That is why the government is actively trying to integrate cryptocurrency into the economy. For example, pensions are paid in the cryptocurrency and citizens have to pay with Petro for passports.

More and more countries seem to be taking more and more crypto and are now using frameworks to be able to levy crypto-taxes. Recently, the American state of Ohio made it possible for companies to pay taxes in crypto.

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