House Lawmaker Targets Puerto Rico as Crypto Tax Haven

A U.S. House of Representatives member is proposing legislation to stop investors from exploiting the tax advantages of Puerto Rico’s status as a crypto haven. Rep. Nydia Velázquez introduced the Fair Taxation of Digital Assets in Puerto Rico Act, aiming to alter Puerto Rico’s existing laws and require certain investors to pay local and federal taxes on capital gains from digital assets, including cryptocurrencies. The bill would incorporate changes to Puerto Rico’s Internal Revenue Code to ensure income from cryptocurrency is subject to federal tax regulations.