Venezuelan Government Approves New Tax on Cryptocurrency and Foreign Currency Transactions Cryptocurrency

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The Venezuelan government has approved a new tax that would affect foreign currency transactions and cryptocurrency transactions. Approved by the country’s National Assembly, the tax, known as the “large financial transactions” tax, would levy up to 20% on transactions made in currencies other than the national fiat currency or Petro.

The Venezuelan Government Will Tax Crypto Transactions

The Venezuelan government has approved a new tax that will affect transactions and payments made with cryptocurrencies and foreign currencies. The tax, called the “large financial transactions” tax, aims to encourage the use of the national currency which has lost its relevance in a multi-currency environment such as that present in Venezuela in recent years.

The tax establishes that any transaction or payment made in foreign currencies or cryptocurrencies, without quantity limit, will have to pay up to 20% on each movement, depending on the nature of it and the companies or people who make them. perform.

The percentage to be paid will be established by the national government after the official publication of the law, but when it is first applied, it will collect 2.5% on these payments.

Recognized cryptocurrency volumes and reactions

The inclusion of cryptocurrencies in this law is a recognition of the importance of this type of currency and the volume that is moved in the country with regard to transactions and payments. This is the opinion of Aaron Olmos, a national economist. However, the main objective of the law would be to tax transactions carried out in dollars, which represent an estimated 65% of transactions and payments in the country.

Jose Guerra, a Venezuelan economist, thinks this will be a blow to Venezuelans, who use foreign currencies and cryptocurrencies to store their savings. Regarding this, Guerra said:

It must be recognized that the foreign currency has solved part of the problems of cash flow, reserves of value and savings for everyone in the country. Also crypto assets, to some extent. Making this decision means trying to favor one means of payment over another.

Another side effect of this law would be the incentive for the creation of black markets to avoid the payment of this law, according to Oscar José Torrealba, director of the Center for the Dissemination of Economic Knowledge in the country. Torrealba said traders and people would transact outside the law encouraged by tax pressure.

What do you think of this new tax introduced by the Venezuelan government? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price surge happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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