Bitcoin profits of foreign investors in El Salvador will not be subject to taxes to entice overseas investments, a legal adviser of the government said in a BeInCrypto report.

  • Legal Adviser to President Nayib Bukele Javier Argueta said investors who have assets in Bitcoin and make high profits will have no tax, in an effort to encourage foreign investments.
  • El Salvador is also in discussions with international agencies over compliance measures, with global bodies such as the Internal Monetary Fund flagging traceability and illicit financial activities as major risks.
  • The country launched its official Bitcoin waller Chivo on September 7, with $30 Bitcoin offered for first-time users, as the country accumulated some 400 Bitcoins in preparation for the legalization of the digital token as legal tender.
  • While the Chivo Wallet seems to be functioning as designed, several users have reported issues with automated teller machines. Citizens have also protested the legalization, citing volatility issues.

Internal ministers are looking into such issues, noting that salary payments could be impacted by the swings of the token. BTC is down 2.62%.