{"id":127645,"date":"2025-04-21T23:21:47","date_gmt":"2025-04-21T23:21:47","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127645"},"modified":"2025-04-21T23:21:47","modified_gmt":"2025-04-21T23:21:47","slug":"us-lawmaker-targets-crypto-investors-using-puerto-rico-as-a-tax-haven","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127645","title":{"rendered":"US lawmaker targets crypto investors using Puerto Rico as a tax haven"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsA member of the House of Representatives has proposed legislation aimed at stopping investors from using the US territory of Puerto Rico as a crypto tax haven.<br \/>\nAccording to an April 21 Bloomberg report, New York Representative Nydia Vel\u00e1zquez introduced the Fair Taxation of Digital Assets in Puerto Rico Act, a bill that could change existing laws in the territory to require certain investors to pay local and federal taxes on capital gains, including from digital assets. The legislation would reportedly add text to Puerto Rico\u2019s Internal Revenue Code, making income from cryptocurrencies subject to federal tax laws.<br \/>\n\u201cThis wave of crypto investors hasn\u2019t helped Puerto Rico\u2019s recovery or strengthened the local economy,\u201d said Rep. Vel\u00e1zquez, according to Bloomberg. \u201cInstead, it\u2019s driven up housing costs, pushed out local residents, and added pressure to an island where nearly 40% of people live in poverty \u2014 all while costing the federal government billions in lost tax revenue.\u201d<br \/>\nPuerto Rico is well known as a tax haven for many people in the crypto industry since the territory began allowing exemptions in 2012 under Act 20 and Act 22 of the Tax Incentives Code \u2014 later consolidated as Act 60. The island has attracted investors, including Pantera Capital founder Dan Morehead, venture capitalist Brock Pierce, and online influencer Logan Paul.<br \/>\nRelated: NFT trader faces prison for $13M tax fraud on CryptoPunk profits<br \/>\nMissing out on crypto tax revenue<br \/>\nRep. Velazquez\u2019s office reportedly said Puerto Rico could lose roughly $4.5 billion in revenue from 2020 to 2026 due to the tax incentives in place. In contrast, Puerto Rico Governor Jenniffer Gonz\u00e1lez-Col\u00f3n proposed extending Act 60, set to expire in 2035, to the end of 2055, but requiring applicants to be subject to a 4% capital gains tax rate, smaller than the typical range up to 37% in the US.<br \/>\nIt\u2019s unclear whether the legislation proposed by Rep. Velazquez, a Democrat, would have enough political support to pass in the Republican-controlled House or Senate. Both chambers will likely consider floor votes for stablecoin legislation and a crypto regulatory framework in the coming months.<br \/>\nMagazine: XRP win leaves Ripple and industry with no crypto legal precedent set<a href=\"https:\/\/cointelegraph.com\/news\/nydia-velazquez-crypto-puerto-rico-taxes?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsA member of the House of Representatives has proposed legislation aimed at stopping investors from using the US territory of Puerto Rico as a crypto tax haven. According&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127645"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127645"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127645\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127645"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}