- The Venezuelan government has authorized a new tax that will affect cryptocurrency and international cash exchanges and remittances.
- The Virtual Assets Bill (as the proposed law is known) was unanimously endorsed on February 2.
Venezuela's government is considering levying a cryptocurrency tax.
The Venezuelan government has authorized a new tax that will affect cryptocurrency and international cash exchanges and remittances. The levy, known as the "large financial transaction" tax, aims to encourage the usage of the country's currency, which has dropped significantly in a multi-currency system like Venezuela's in recent times.
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The tax stipulates that every operation or payment conducted in international currencies or virtual currencies in an unlimited number will be subject to a charge of up to 20%, based on the type of the transactions and the organizations or individuals involved.
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The federal government will choose the fraction to be charged after the legislation is officially published, but it will charge 2.5% on these transactions in its first implementation.
The introduction of digital currencies in this legislation highlights the significance of this type of currency and the number of dealings and payments in the nation. Aaron Olmos, a national economist, holds this view. The legislation's primary goal would be to tax deals involving dollars, which, as per statistics, account for 65% of all activities and payments in the nation.
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Botswana to impose a new regulatory framework
Botswana's authority has enacted a measure establishing a complete set of regulations for crypto exchanges. The project is composed of the government's anti-money laundering initiatives.
As per Bloomberg, Botswana will be the next country to establish regulations in its crypto sector.
On February 2, the Virtual Assets Bill (as the proposed law is known) was unanimously endorsed.
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As per the opposition party, keeping the virtual currencies economy uncontrolled may turn the national finance system into a "Wild West." The MPs noted that regulations are vital since they may minimize money-laundering operations.
Related post: Zimbabwe agrees to tax crypto and e-commerce entities
Anybody wishing to sell cryptocurrency will need to obtain a permit from the Non-Bank Financial Institutions Regulatory Agency under the new laws.
Botswana's central bank cautioned two months ago that trading in cryptocurrency is risky and that the market should be regulated. President Masisi and his administration must still sign the proposed law before it becomes law.
Botswana's regulatory objectives align with many different countries that have considered regulating the business.
