Portugal’s ‘crypto haven’ status under threat

Portugal is planning to go back on its status of a “crypto haven” owing to the lack of tax on gains generated through cryptocurrency transactions.

The country is now planning to change that with the Ministry of Finance talking about a crypto gains tax on cryptocurrency transactions and assets.

The ministry wants to treat crypto as a form of asset which is bound to have ripple effect across Portugal’s thriving ecosystem.

Tax authorities are looking into the matter, hoping to find ways to introduce regulation without stifling innovation.

According to Minister of Finance Fernando Medina it is possible. “Several countries already have systems. Several countries are building their models regarding this matter, and we are going to build ours”, he said.

Portugal’s attitude towards cryptocurrencies has been one that considers them non-assets, because of their status of “currencies”.

What this means is that while businesses which deal in cryptocurrencies are taxed, individuals who invest and release gains are not.

This is likely to change as Medina and his colleagues want to create a more level playfield for everyone. The country also wants to benefit from its appealing status to crypto investors.

Many have dubbed it a “Bitcoin haven” too. There are few details as to what Portugal may do next regarding this mooted tax idea.

Some investors may choose to leave the country, but overall, a well-balanced tax on crypto may be the answer.

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Source

Updated: 05/17/2022 — 17:00