As per the presidential legal counsel, the government of El Salvador will exempt investors from giving a capital gains tax and an income tax on Bitcoin (BTC).

The legal consultant of President Nayib Bukele, Javier Argueta, is looking to inspire foreign investment through main tax breaks on BTC.

“If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment,” Argueta stated, adding that El Salvador will carry out no taxes on “either the capital increase or the income.”

Argueta reportedly noted that the Salvadoran government would be energetically tracing BTC transactions on El Salvador’s official Bitcoin wallet, Chivo, to combat the possibly unlawful use of the crypto. “We are implementing a series of recommendations from international institutions against money laundering,” he said.

The Chivo wallet would too temporarily stop BTC transactions on the claim if the value of BTC warped to decrease the effect of risky volatility or price variations.