Puerto Rico To Become Cryptocurrency Capital Due To Favorable Tax Laws

One of the controversial topics in recent times is the payment of tax on cryptocurrency gains. In the USA, the IRS termed virtual currencies as property which means that holders will pay taxes like holders of fundamental properties or stocks. The agency even sent a subpoena to many centralized cryptocurrency exchanges to give up the information of non-compliant taxpayers. Even though many people in the cryptocurrency community frown against such taxes, the government is bent on ensuring compliance. Presently, non-compliance to the crypto tax payment requirement attracts legal action. So, it is not surprising that cryptocurrency investors seek a tax-free state to operate without limits. Puerto Rico Becomes Tax Haven For Investors As the United States clamped down on non-compliant citizens, the top affluent crypto investors moved to Puerto Rico to avoid taxes. The territory, though in the USA, is not charging federal income tax on crypto gains. The cryptocurrency market is down in red zone | Source: Crypto Total Market Cap on TradingView.com According to its local law Act 22, residents of Puerto Rico are exempted from paying taxes on capital gains, interests and dividends. So, people are free to keep all their profits to themselves at least for six months. Related Reading | Monero Featured In Last Week Tonight, Essential Tool In “Ransomware Economy”? Many people were not aware of this provision until France...