US Lawmakers Introduced Virtual Currency Tax Fairness Act to Expand Use: Crypto Moves
RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Sunday, rising 0.44% to $41,682 at 1:19 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,017, up 0.08%, according to data from Coindesk.
On Thursday, several US lawmakers introduced the Virtual Currency Tax Fairness Act of 2022 to boost the legitimacy of cryptocurrency.
The bill would create a workable structure to tax purchases made in virtual currency, also known as cryptocurrency, lawmakers explained.
It will also expand the use of cryptocurrency for payments and bolster its legitimacy in the digital economy, according to bitcoin.com.
The lawmakers pointed out that the current law makes daily use of virtual currency nearly impossible, prevents 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 earnings are $200 or less, lawmakers said.
Meanwhile, the Venezuelan government has approved a new tax that will affect cryptocurrency and foreign currency transactions and payments.
The tax, called the Large Financial Transactions Tax, aims to incentivize the use of the national currency which has lost relevance in a multi-currency environment like the one present in Venezuela in recent years.
The tax stipulates 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.
Jose Guerra, a Venezuelan economist, believes this will be a blow to Venezuelans who use foreign currencies and cryptocurrencies to store their savings.
“It must be recognized that foreign currencies have solved part of the problems of cash flow, stores of value and savings for everyone in the country. Also crypto assets, to some extent. Making that decision is trying to favor one payment method over another,” Guerra said.