17.05.202214:12 Forex Analysis & Reviews: Portugal is preparing changes in the tax legislation in the field of cryptocurrencies

Portugal has long been a country that is considered a cryptocurrency haven. The main reason for this is the lack of taxation related to cryptocurrency in it. However, according to the latest news, it will not continue like this anymore - the authorities are preparing to change their policy. Fernando Medina, Portugal's finance minister, said recently that the country is working on a structure that allows taxation on income derived from the use of cryptocurrencies in accordance with the principles of "fairness" and "efficiency". He also noted that the new bill will be aimed at eliminating the gaps that currently exist in taxation for the cryptocurrency sector.

The minister also said that quite a lot of countries have recently been building their models in this direction, and Portugal is going to build its own. Currently, there are no clear dates when the new bill will be developed and even more so adopted, but the fact that the authorities have closely dealt with this issue says that sooner or later "the shop will be closed." As soon as Portugal adapts the new legislation to the field of cryptocurrencies, users who actively use this type of asset will have to think about paying taxes.

The Ministry of Finance has already asked the Portuguese Tax Service to study how crypto assets were taxed in other countries in 2021 to offer an adequate tax base for these new instruments, taking into account the necessary balance between the fair distribution of income and wealth and attracting foreign investment.

The Finance Minister also stated that the models of taxation of income from cryptocurrencies have not yet been determined. However, they will be created in accordance with the principles of "fairness" and "efficiency". The purpose of creating a new tax system is to preserve investors working in this area and attract new investments already within the framework of the legislative framework with full payment of all tax fees. Medina also noted that the new system should make taxation "adequate".

According to the authorities, cryptocurrencies have recently begun to be used as a means of payment in real estate transactions in Portugal. On May 8, the first transaction of this kind took place in the country, when an apartment in Braga was sold for 3 BTC.

As for the technical picture of bitcoin, after the largest sale, which was provoked by the collapse of the UST stablecoin and the Terra blockchain, the exchange rate stabilized a little. At the moment, for the development of the initiative on the part of the bulls, active actions are needed in the area of $ 31,000, since fixing above this range will quickly return the trading instrument to $ 32,650, allowing investors to calm their nerves a little. Equally important will be the protection of the $ 29,400 level. The fact that bitcoin continues to enjoy support from major players may mitigate its further decline, which may occur if the bulls do not offer anything in this range. The decline of the US stock market, as well as the sharp drop in the NASDAQ technology index, will surely drag bitcoin down further. A breakdown of the $ 29,400 level will send the trading instrument back to a minimum of 27,600, and there it will be close to $ 25,700, which will turn the market upside down again and cause panic on the part of many investors.

As for the technical picture of the ether

The focus remains on the $ 2,150 resistance. A breakthrough of this level will quickly return the ether to $ 2,295, and then very close to $ 2,430, which will be a serious problem for traders. Only consolidation above will allow building an upward trend for the trading instrument with the prospect of updating the highs in the area: $ 2,630 and $ 2,760. In case of a return of pressure on ETH, purchases in the area of large support of $ 1,980, as it has been recently, are not excluded. A break in this range will be a reason to go to the lows: $ 1,840 and $ 1,690 - the minimum of this year, where the major players will again begin to actively act.