Digital currency operators in Venezuela will be required to pay their taxes in cryptocurrencies, according to a decree the Venezuelan government published recently.
As per a gazette notification issued by the Ministry of the Popular Power of Economy and Finances, foreign currency exchange operators must pay their taxes in the respective foreign currencies, local media reported.
Economic news portal Dinero published the provisions of the Decree, which outlines new tax payment rules for cryptocurrency operators.
Transactions of securities traded on the country’s stock exchanges and the export of goods and services by state bodies are exempted from this requirement.
“The Venezuelan people are currently facing a fierce war waged by internal and external factors that pursue the deterioration of the economy, which is why it is necessary to adopt sufficient measures to ensure the strengthening of the current fiscal regime,” the decree states.
Petro is Venezuela’s national crypto currency, A Municipality in Venezuela’s Zulia State recently announced that it will use Petro as the basis for business tax calculations.
With not much left to tax in the depleted domestic economy, the Venezuelan regime is now said to be taking a cut of money coming in from abroad.
Banks charge a processing fee of up to 56 percent on customers for converting dollars to bolivars through a wire transfer from the United States.
Petro was adopted as Venezuela’s national currency in October, and is backed partially by oil.
President Nicolas Maduro allocated five billion barrels of oil to back Petro, which he launched to ease the country’s economic crisis, and circumvent U.S.-led sanctions.
Venezuela has the world’s largest proven oil reserves. But the reforms have not helped Venezuela’s economy recover from the pressure of the sanctions, falling oil revenue, and the plunging value of its currency, the bolivar.
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