Puerto Rico Faces Tax Haven Scrutiny as Crypto Legislation Introduced

A new bill targeting Puerto Rico’s status as a tax haven for cryptocurrency investors has been proposed. Representative Nydia Velázquez introduced the Fair Taxation of Digital Assets in Puerto Rico Act, aiming to amend laws and ensure that crypto-related capital gains are taxed both at the local and federal levels. This legislation seeks to align Puerto Rico’s Internal Revenue Code with federal tax regulations for income generated through digital assets.