Costa Rican lawmakers are currently aiming to decrease cryptocurrency taxes and make their country more digitally oriented. Costa Rican lawmaker Johana Obando recently proposed a bill to remove taxes imposed on bitcoin.
The news was announced through Obando’s Twitter page. According to Obando (translated), “the Cryptoassets Market Law (MECA) will protect individuals’ digital property and assets without the involvement of the nation’s central bank, but in complete harmony with it”.
By passing the legislation, the government will be unable to impose taxes on anyone who uses crypto to make purchases.
Additionally, neither cryptocurrency produced by the mining industry nor cryptocurrency retained in cold storage would be subject to profit taxation by the government. However, the bill would subject cryptocurrency trading earnings to income taxes.
The law is expected to draw foreign investment, fintech firms, and jobs for Costa Ricans because legislation that defines digital assets and makes it possible for anybody to buy, trade, use, and store cryptocurrencies without intervention from the Costa Rican government will be implemented.
Obando however made it clear that there will be a big difference between the proposed law and that of El Salvador. While bitcoin is accepted as a legal means of payment in El Salvador, the MECA only regards crypto as a type of private virtual currency with open access that the State is not compelled to acquire or replace.
Proposed Cryptocurrency Laws
Different bills have been proposed and implemented by lawmakers in relation to the use of cryptocurrencies in preparedness to be digitally ready and to ensure regulation in the digital ecosystem. In similar news, UK lawmakers show support for the use of cryptocurrencies as financial instruments.
Due to recent legislation released by the Uruguayan government, the cryptocurrency ecosystem is now under the control of the Central Bank of Uruguay (BCU), the nation’s top financial institution.
Earlier in September, the president of Paraguay, Mario Abdo Benitez, rejected a proposal that would have regulated cryptocurrency mining and turned it into an industry. The primary factor for the disapproval appears to be the extensive use of energy.