Venezuelan Government Authorizes New Tax for Crypto Transactions

The Venezuelan government has approved a new tax that will apply to transactions and payments made using digital and international currencies.

The “tax on large financial transactions” approved by the National Assembly of the country aims to revamp the national currency. According to the authorities, the South American country has become less popular in recent years in digital currencies.

The tax documents that for any payments or transactions using cryptocurrencies and global currencies, citizens and companies must pay a tax of 20%. The country’s authorities recognize the importance of cryptocurrencies as a means of payment. Still, according to experts, the primary purpose of the law is to incentivize the use of the national currency in a multi-currency environment.

However, the law’s primary objective would be to tax transactions made using the dollar that accounts for 65% of all payments in the country. Venezuelan economist Jose Guerra noted that the bill would hit the pockets” of the country’s citizens who use foreign or digital currencies to store savings.

“It must be recognized that foreign currency has solved part of the cash problems, reserves of value, and savings of everyone in the country. Also, crypto assets, to a certain extent. Making this decision is trying to privilege one means of payment over another.”

Recall that in October last year, the leadership of the Maiquetia International Airport in Venezuela announced that the airport would accept BTC and DASH and the state digital currency Petro to pay for air tickets.