Chile seems the least likely place for anyone to tax cryptocurrencies, but it’s happening. For a fair while now, lawmakers have been banging their heads together in a desperate attempt to strike a balance between necessity and obligation.
True, cryptocurrencies are well beyond anyone’s reach, or so popular belief goes. But things are changing rather quickly as it is and there is no way to deny this. Go to Uncle Sam and he will tell you – cryptocurrencies are very much taxable.
The investigations of the U.S. Securities and Exchange Commission (SEC) have been quite vast in recent months and there’s no denying the fact. Uncle Sam is apparently hard-bent on delivering justice by surveying the known operators of cryptocurrencies.
True, Chile is not the United States, but control here seems to be just as tight. Or so the authorities want to show right now. Chile’s taxman is looking into cryptocurrencies, which will now be subject to Value Added Tax (VAT).
Let’s face it – this is crazy. Where’s the certainty of it? Crypto assets are constantly devaluing, which makes them very difficult to pinpoint indeed. There are many reasons for concerns, too. Individuals who pay taxes will be far and few between, meaning that other investors will have an edge.
This is an unfair condition, which cannot be addressed in full and Chile knows that. Nevertheless, Chile’s intentions are not bad or intentionally attempting to disrupt the slice of paradise that the country’s skilled investors have carved for themselves.
However, the Chilean government has now announced that these assets will become an own income currency and will be part of the effective income that is charged from people. Thee are hardly anyone who’s surprised, to be honest.
The country’s SII, the office that regulates taxes, will now focus on identifying investors and bringing them onboard. Fernando Barraza has painted a different picture for the industry in the country as well.
Cryptocurrencies in Chile – A Really Different Affair altogether
If you are looking to draw parallels between cryptocurrency economies around the world and Chile, you might just fall short of the mark. It’s very simple. Chile is actually using Bitcoin and other cryptocurrencies to purchase real goods.
In a sense, the digital tokens already act as an exchange medium and you can purchase almost anything, although, admittedly – it’s not always immediately available and you might to do some looking around after all. It’s as simple as that. Here’s what a local newspaper had to say about cryptocurrencies in Chile:
The SII has arranged taxation in the broadest possible way, this is apparently due to two objectives: on one hand expand the tax structure as much as possible to cover all types of cryptoassets and, on the other hand, due to the current lack in Chilean legislation of figures specifically designed for this type of instruments, which makes it difficult to generate more specific items.
Chile is now looking to make good on its promise to change the country and create a modest environment for true upright citizens to do their fair bit. You might be wondering if there aren’t security risks to this burgeoning and already taxed environment, and perhaps there are. We won’t lie.
Is It Really That Big a Thing?
When it comes to security, thee are no safeguards, other than the system’s inherent security measures. Put simply, you can always do something new and exciting, but in all honesty, vendors are already accepting payments in the cryptocurrency.
The main danger is to have the digital stock of users stolen by third-party that successfully manage to crack the crypto exchanges that store the capital. However, with 5,000 vendors accepting payment in Bitcoin, it’s hard to imagine a decentralized stock.
Nevertheless, there’s a lot of pressure on cryptocurrencies and this is understandable. To think that it can be circumnavigated is of course a delusion which not many people share. Cryptocurrencies are indeed becoming an interesting tool to do financial transactions in the country.
But How Does the Country Keep the Price Relatively Unchanged
This is a good question. If Bitcoin fluctuates so violently, who’s to guarantee that people won’t be losing/making more money than they “should”. Crypto MKT is a platform based in Chile, which is focused on providing people with fair options.
Thanks to Crypto MKT, crypto payments can happen without the currency losing any significant amount of its value. This is important for a thriving economy in the crypto world and it has long been one of the biggest challenges of the known crypto world.
With Crypto MKT onboard, Chile is truly standing to make a big splash in the global world of cryptocurrencies. There’s a rather convincing simplicity to the country’s offer, but don’t be mistaken – underneath it all, there’s a lot of hard work as well.