Highlights from South America: Colombian Head connects with Blockchain Enthusiasts, Brazil Implements 15% Levy on Foreign Crypto Investments
We turn our focus to Latin America, where prominent crypto milestones have taken place in the past week. The highlights include the Colombian Head chatting with blockchain pioneers, Brazil ushering in a new law that slaps a tax on foreign crypto investments, and a stride in Argentina towards establishing a framework for tokenization by the Fintech Chamber.
Interactive session between Gustavo Petro and Blockchain experts
Gustavo Petro, the Colombian president, had a significant interaction with fervent blockchain advocates, wherein the talks circled around the likely integration of this groundbreaking technology into public schemes and the potential advantages it could offer.
This crucial meeting had key participants who are known to be prominent blockchain proponents like JAN3’s CEO, Samson Mow, and their Marketing Director, Raul Velasquez. JAN3’s CMO, Edwin Rivas, Diego Gutierrez who is the co-founder of RSK Labs, Cristian Quintero the consulting expert for Bingx International Operations and Tropykus co-founder, Mauricio Tovar. They deliberated on incorporating this tech in scenarios like land registry applications and health billing systems.
Petro hinted at utilizing Bitcoin to fund work cooperatives in popular regions, showcasing the promising prospects these tools hold for the prosperity of the masses.
New law Taxing Crypto Purchases on Foreign Exchanges Approved by Brazil’s Senate
In a historic move, the Brazilian Senate greenlit the Bill 4,173/2023, which outlines the tax clauses applicable to Brazilians investing overseas, inclusive of cryptocurrency purchases. The proposal, awaiting the president’s approval, aims to alter the existing gain rate for cryptocurrency income tax, taking it to a flat 15% for any income earned.
Despite the approval, there’s a level of ambiguity regarding the bill’s details and its applicability. The purview of exchanges deemed as offshore is also undefined. This wide-ranging bill, according to Maria Carolina Sampaio, the head of the tax area and a partner at GVM Advogados, remains broad and unclear. She is of the view that the bill fails to define which assets will be taxed and fails to clarify what a foreign investment is.
Argentina’s Fintech Chamber Discloses Tokenization Regulation Proposal
Argentina has made a leap in shaping regulations for the tokenization of real-world assets (RWA). This has been executed through a group of proposals released by the Argentine Fintech Chamber. The organization suggests adopting a restricted sandbox to experiment and prove the tokenization approach’s utility across different scenarios.
In addition, the chamber suggests incorporating processes to affirm that the tokens issued correspond to the advertised assets. It also intends to make the issuers aware of the taxes and processes required for efficient tokenization of these assets. It even proposed provision of physical examination services for these assets by notaries.
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Keep checking this space for more updates and insights from the world of crypto and beyond!
Frequently asked Questions
1. Who are the blockchain specialists consulted by the Colombian President?
The blockchain specialists consulted by the Colombian President are experts in the field of blockchain technology who have been sought out for their knowledge and insights.
2. What is the significance of the Colombian President consulting blockchain specialists?
The Colombian President consulting blockchain specialists highlights the growing importance and potential impact of blockchain technology in the country’s development plans and policies.
3. What does the implementation of a 15% tax on international crypto investments mean for Brazil?
The implementation of a 15% tax on international crypto investments in Brazil means that individuals or entities investing in cryptocurrencies from outside the country will be subject to this tax.
4. Why has Brazil decided to implement a tax on international crypto investments?
Brazil has decided to implement a tax on international crypto investments to regulate and monitor the flow of money in the cryptocurrency market and ensure compliance with tax regulations.
5. How will the 15% tax on international crypto investments impact the cryptocurrency market in Brazil?
The 15% tax on international crypto investments is expected to have an impact on the cryptocurrency market in Brazil by potentially reducing foreign investment in cryptocurrencies and influencing investment strategies.
6. What are the potential benefits of consulting blockchain specialists for a country’s development plans?
Consulting blockchain specialists can bring various benefits to a country’s development plans, including gaining insights into innovative technological solutions, exploring new business opportunities, and fostering economic growth in the blockchain industry.
7. How does Colombia’s consultation with blockchain specialists compare to other countries in Latin America?
Colombia’s consultation with blockchain specialists demonstrates its commitment to embracing blockchain technology. While other countries in Latin America might have also consulted blockchain specialists, it highlights Colombia’s proactive approach towards harnessing the potential of blockchain for its development agenda.