๐ธ๐ Crypto Under Fire: Governments Turn to Digital Assets for Tax Revenue
๐ฅ The tax net is tightening on crypto worldwide. What used to be a โtax-free playgroundโ is now turning into a prime target for governments hungry for revenue.
๐ง๐ท Brazil leads the charge:
Scrapped exemptions for small gains โ
Introduced a 17.5% flat tax on all digital asset profits.
๐ And itโs not just Brazilโฆ
๐ต๐น Portugal: From paradise to penalty โ now 28% tax on gains under 1 year.
๐ฉ๐ช Germany: Still friendly โ crypto held over 12 months stays tax-free (up to โฌ600 for shorter plays).
๐ฌ๐ง UK: Shrinking allowances โ capital gains tax-free band slashed from ยฃ6,000 โ ยฃ3,000.
โก The global trend:
Governments are realizing crypto is a goldmine for taxation, especially as Bitcoin has averaged a 61.2% yearly return over the last 5 years ๐.
๐ Who pays the price?
Small investors ๐งโ๐ป๐ธ
Retail traders in inflation-hit economies ๐
Startups trying to grow in stricter markets ๐
Institutions? Theyโll likely adjust, relocate, or absorb costs.
๐ข The reality:
The age of low-tax or no-tax crypto investing is ending. The only questions now: How soon will other โfriendlyโ nations follow, and how tough will the rules get?
