Dozens of evolving nations and established nations have been working to lower their taxes on income from cryptocurrencies.
At the beginning of October 2024, the UAE announced that cryptocurrency transactions would be exempt from value-added taxes starting November 15, 2024.
The Arabic version of the announcement was published on October 02, 2024, and after two days, the official uploaded the English version. Following the announcement, it is clear that holding, transferring, and exchange of cryptocurrencies will not be taxed with the standard 5% VAT.
The news of VAT exemption in UAE has raised the eyebrows of crypto moguls and experts. Shytoshi Kusama, the lead developer behind the development of Shiba Inu, reposted an X post of Watcher Guru, adding a gif of a character from the popular anime series Dragon Ball; with the hashtag #cryptocapital.
#cryptocapital https://t.co/DEYRzhrizZ pic.twitter.com/xtT7Uw8OzE
— Shytoshi Kusama (@ShytoshiKusama) October 6, 2024
From the X handle of Saku Monster, a reply was posted over the same post with a caption of “on my way,” which created speculation that it is expanding its global presence. It is a mobile application available on Google Play Store and iOS Store that aims to be a blockchain game with its own tokenized economy.
On my way pic.twitter.com/q9bvDZwnuv
— Saku Monsters – Beta (@sakumonsters) October 6, 2024
Earlier on October 01, 2024, Todayq reported that Ripple, a known crypto payment infrastructure provider, gathered a green signal from Dubai’s financial authority, enabling the firm to establish its presence in the UAE.
Why Are Nations Slashing Taxes Over Crypto?
Several reasons are linked to the tax reduction; one primary identified reason is attracting foreign investment to boost their economy and other basic infrastructure.
However, winning the crown of ‘Crypto hub’ has also fueled a race among evolving regions such as Singapore, Hong Kong, and UAE. But in terms of crypto adoption, India has topped the list for the second consecutive year.
Nations like El Salvador have set an example for other nations by legalizing Bitcoin; as of writing, the nation holds 5,748.8 BTCs. Another reason behind the cut down in taxes could be the willingness of countries to reduce their dependence on U.S dollars in international trade.
It is worth noting that Singapore has no capital gains tax for individuals not engaged in regular trading or business activity with crypto, making it a crypto tax-free country. However, it charges an 8% goods and services tax to fees when you purchase, sell, or convert crypto.
Crypto Market Price Updates
Until publishing, the cryptocurrency market capitalization was at $2.17 trillion, falling 1.02 percent; at the same time, the fear and greed index was at 41, determining the neutrality in the market sentiments.
At the time of writing, Bitcoin was trading at $62,542 after losing 1.92% of its price in a week; the dominance of BTC continues to grow, reaching 56.88%, followed by Ethereum with 13% of dominance.
First, Neiro On Ethereum (Neiro) has gathered huge attention as its price grew over 12 percent, reaching $0.00169, making it the topper of the intraday gainers list, followed by Aptos (APT) at $9.16, Fantom at $0.6814, and Sei (SEI) at $0.4458.
