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Portuguese Government Refuses to Tax Crypto, Blocking Two Bills

The Assembleia da Republica announced today that the two crypto bills proposed to curb activity with Bitcoin and other cryptocurrencies were denied. The country on the Iberian Peninsula is known as a crypto tax haven and a hub for Web 3.0 nomads.

Recent Crypto Legislation Was Pushed by Minority Parties

The offer to tax cryptocurrencies came from the left wing parties like Livre and Bloco de Esquerda. At the beginning of the month, Minister of Finance Fernando Medina explicitly stated that the Portuguese government would eventually put crypto taxes into place, meaning that the days of trading freedom for crypto and Web 3.0 enthusiasts in the countrymay soon come to an end. The two bills put forward were voted on during the voting session for the yearly budget.

The leading party in the Portuguese government is the Socialist Party, which seems to have little interest in installing crypto legislation or taxation. Portuguese economic newspaper ECO has provided a full-length video of the parliamentary session during which the bills were voted down.

Crypto Rules in Portugal May Still Change

The rejection of the bills may well be great news for crypto enthusiasts residing in Lisbon, but that may not be the case for long. Ultimately, key members of the government hold different opinions towards digital assets than those in the leading party, and it seems inevitable that alterations will be made. Mendonca Mendes, the Secretary of State for Fiscal Issues, explained: “We are evaluating by comparing internationally what is the definition of crypto assets, which includes crypto currencies”.

Another strong ambassador for crypto regulation is Mr. Fernando Medina, the Finance Minister, who said less than two weeks ago, “it is an area in which there is a lot more knowledge and a lot more progress, so that Portugal can learn from international experience.” By all indications, Portugal stands on the precipice of a monumental decision, but which side will it fall upon? That’s likely to be revealed in the forthcoming months.

On the Flipside

  • El Salvador set up a meeting with bankers and government officials from 44 countries to discuss Bitcoin.
  • The Central African Republic recently adopted Bitcoin as legal tender, and is in the midst of creating a duty-free crypto hub.
  • Cyprus, another well-known European crypto hub, has started discussing its own legal framework, but remains aware of the European Union’s efforts.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Tadas Klimasevskis is a blockchain journalist and content creator, focusing on the latest tendencies of the crypto world and digging deeper into specific innovations like music NFTs, gaming NFTs and Metaverse. Vast experience in social media lets Tadas quickly spot what’s going on in the crypto industry and deliver a story with a unique spin.