Venezuela doesn’t want its own fiat.

Venezuela has published a decree in its official government newspaper that taxation for operations utilizing cryptocurrency and foreign fiat currency will be paid in the same currency and not in the Venezuelan Bolivar.

On Monday, January 7, 2019, the Gaceta Oficial edition No. 6,420 published decree No. 3,719 introducing the changes and describing them as necessary during a state of economic emergency.  All citizens who deal with cryptocurrency or foreign fiat must report the income and pay taxes in the same currency in which it was transacted and not in the sovereign Bolivar.  This comes as the country attempts to stabilize during devastating hyperinflation of more than 1MM percent.

While the country has not yet specified taxation rates, it is expected they will be set shortly by Venezuela’s tax and customs duties regulator SENIAT, they have already announced penalties for failure to comply.

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