El Salvador To Exempt Bitcoin Investors From Profits On Capital Gains, Capital Increase

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According to a news published on Coindesk a couple of hours ago (citing an AFP report from Friday) El Salvador will exempt Bitcoin investors from profits on capital gains and capital increase. Just less than a week ago, El Salvador made Bitcoin legal tender in a world first move.

“If a person has assets in bitcoin and makes high profits, there will be no tax,” Javier Argueta, legal adviser to President Nayib Bukele, told AFP. “There will be no taxes to pay on either the capital increase or the income.”

Interestingly, he added that transactions would be halted temporarily if its value (Bitcoin value, I presume) were ever to collapse.

Still trying to wrap my head around the last sentence, but maybe there are things that I don't know yet about how they will implement this measure. I hope he didn't mean he will stop Bitcoin from trading, because that's not only impossible, but will reveal a very basic level of understanding of crypto at the highest country level.

Anyway, all in all, good news to start the Monday.

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