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For a long time, the crypto industry has done an outstanding job of generating gains for traders and market players. However, even though most governments find it difficult to control the sector, they impose a crypto tax on consumers. Venezuela, for example, has imposed a 20% tax on all cryptocurrency transactions. According to local news outlets, the decision was considered during a second session last week.

A cryptocurrency tax will push the adoption of the Petro

During a National Assembly session, MPs discussed the possibility of imposing a crypto tax on large transactions using digital assets like Bitcoin and Ethereum. A draft bill was signed following the discussion, implying that corporations and dealers will be subject to a 20% crypto tax. However, the proposed bill still went so far as to include trades performed in US currency.

The bill, submitted on January 20, intends to collect a tax of up to 20% on transactions carried out in any currency other than the one issued by the country’s central bank. One of the draft bill’s goals is to encourage individuals to use local cash instead of digital assets. According to data, Petro lost more than 70% of its value last year, putting the currency in trouble for the first time in a decade.

Venezuela desires a level playing field between Petro and cryptocurrency

The cryptocurrency tax law acknowledges digital assets and what they represent in the financial world. It does, however, wish to level the playing field between its native currency and other digital assets on the market. It also encourages people to use Petro instead of digital assets or other foreign currencies like the dollar.

According to recent statistics, Bitcoin use is increasing globally. On the other hand, Venezuela is one of the top countries where adoption has been seen. Citizens in the nation are concerned about the looming harsh realities of inflation, so they have decided to save their balances in the digital asset. To help drive adoption even further, an airport said it would investigate taking digital assets for flight payments.

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