El Salvador President Offers Incentives for Crypto Community

Bitcoin investors won’t face any capital gains tax, immediate permanent residency for cryptocurrency entrepreneurs — El Salvador President Nayib Bukele’s incentives for the crypto community has attracted attention from investors and entrepreneurs alike, following his recent announcement to make Bitcoin a legal tender in the country. Retweeting cryptocurrency entrepreneur Justin Sun’s tweet, “Crypto investors and entrepreneurs will start to move to El Salvador!”, President Bukele listed out four perks and privileges, especially for the cryptocurrency community, for those who wish to move to El Salvador. The other reasons include the absence of property tax as well as “great weather, world class surfing beaches, beach front properties for sale.”

The tweet comes a couple days after President Bukele announced that El Salvador will be making the cryptocurrency a legal tender. This will make it the first country to be accepting Bitcoin as a legal national currency. At the time of writing, Bitcoin price in India stood at over Rs. 24.14 lakhs.

If President Bukele’s ambitions to make Bitcoin an official currency were to be successful, it would also ensure his promise of there being no capital gains tax on the cryptocurrency, since it would no longer be simply an asset but an official national currency of El Salvador. A move like this is anticipated to create major waves in the global economic framework.

President Bukele’s tweet received an enthusiastic response from investors and entrepreneurs like cryptocurrency platform Tron founder Justin Sun, and Changpeng Zhao, the CEO of the world’s largest cryptocurrency exchange, Binance.

While Sun tweeted “Amazing! Packing now!”, Zhao posted a GIF of Mickey Mouse packing clothes into a trunk, with the caption “Enticing.”

El Salvador’s decision comes as a welcome relief to the cryptocurrency community, especially after China recently banned Chinese banks and financial institutions from offering any service concerning cryptocurrency transactions.

Closer home, the Reserve Bank of India recently clarified that the April 2018 circular is no longer valid following the Supreme Court order on March 4, 2020.

In the April circular, lenders regulated by the RBI were banned from “providing any service in relation to virtual currencies including those of transfer or receipt of money in accounts relating to the purchase or sale of virtual currencies.”