While experiencing strong growth in the cryptocurrency industry, Portuguese have shown a relatively cautious approach to digital assets compared to the global average. Portuguese newsPortuguese local media.
An estimated 268,000 individuals in Portugal are actively investing in digital currencies, accounting for about 2.6% of the country’s population. data Powered by Triple-A, a licensed cryptocurrency payment gateway. While this level of adoption represents progress, it is roughly half the global average, suggesting that the public is cautious about investing in cryptocurrencies.
This figure is particularly pronounced when compared to countries such as the United Arab Emirates, India, China and the United States, where a significant percentage of the population are digital asset investors.
Cryptocurrency investment in Portugal is growing steadily due to growing awareness, technological progress, low cryptocurrency taxes, relocation of Web3 companies and widening acceptance of cryptocurrencies as a viable form of investment. Despite these encouraging factors, the relatively low number of cryptocurrency investors in the country “suggests a cautious or even inaccessible element among the Portuguese public, and investment We will have to address that for the amount to increase.” Portuguese news.
Portugal’s Cautious Crypto Optimism
Portugal continues to make progress in the complex area of virtual currency taxation, new tax rules Regulations on crypto-assets came into force on January 1, 2023, after much consideration within the government. These rules articulate and present the country’s unique characteristics relative to the broader global cryptocurrency tax landscape.
A tax crypto asset is a “digital representation of value or rights that can be transferred or stored electronically through distributed ledger technology.” In particular, unique and non-fungible crypto-assets are excluded from this definition and therefore are not considered crypto-assets for tax purposes.
The rule represents a somewhat liberal approach to taxing income from professional or business activities related to crypto-assets. Only 15% of such income is taxed, with the exception of mining activities, which are taxed at a high rate of 95%.
Additionally, tax laws provide favorable conditions for long-term holders of cryptocurrencies. Capital gains from the sale of crypto assets held for 365 days or longer are tax exempt regardless of when they were acquired. Additionally, receiving crypto assets in exchange for selling other crypto assets is tax-free, a key move expected to boost trade between cryptocurrencies.
Global cryptocurrency adoption
In Portugal, the number of foreign residents has increased by 40% in the last ten years. many Some of the growth is believed to be due to the country’s low cryptocurrency taxes. Nevertheless, the steady growth of the Portuguese cryptocurrency industry shows a promising future, although there is still great potential for further development and wide adoption.
However, in contrast to Portugal, the United Arab Emirates (UAE) is the leader in cryptocurrency adoption, with 27.67% of the population owning crypto assets. Other notable countries include Vietnam, Saudi Arabia, Singapore, Iran, the United States, Ukraine, and Venezuela, each with their own dynamics driving cryptocurrency adoption.
|United Arab Emirates
via data Triple A
Reflecting on the transformative impact of cryptocurrency in Portugal, Masterblocks CEO and Founder Carlos Prada said:
“The creation of cryptocurrencies has become a black swan event that has shaken the nation to its core and created a better future for young people.”
Prada noted that blockchain technology has played a key role in combating unemployment in the country and fostering a sense of ambition among young people. “The possibilities opened up by this helped Portuguese entrepreneurs realize that they could build a parallel global economy without government interference,” he said.
However, cryptocurrency penetration in Portugal may indicate that the general public may not be the most beneficiaries of a progressive stance on cryptocurrencies, a concern local media echoes. are doing.
A crypto-friendly environment may facilitate the growth of crypto-related startups and may be advantageous for the tech-savvy and educated, but perhaps due to a lack of awareness and understanding of risks and rewards. , most of the public remain on the sidelines. Associated with digital assets.
The continued growth of the Portuguese cryptocurrency industry shows a promising future, but there is still a lot of room to cover. For Portugal to capitalize on the full potential of the digital asset revolution, it may need to extend the benefits of its progressive tax environment and burgeoning technology industry to more people.