US Politician Claims Puerto Rico Is a “Haven” for Crypto Speculators

A US lawmaker has blamed Puerto Rico for being a “haven” for rich crypto speculators traveling from the mainland to establish their operations on the island.

According to Nydia Velazquez, a representative from Brooklyn, Puerto Rico is being used by these kinds of crypto speculators as a “tax shelter” and asked a US Treasury Department Official during a hearing of the House Financial Services Committee if Congress could help Internal Revenue Service (IRS) to hunt them.

Velazquez, who represents New York’s 7th Congressional District in the US House of Representatives and is the House Small Business Committee Chair, didn’t provide further details on why the island can be considered a haven for crypto speculators.

Current Regulatory Talks on Crypto Taxes

At the start of the month, digital assets and tax were hot topics. There is an increase in talk as the current tax year comes to an end. Market participants will want more clarity as tax year ends.

Despite varied approaches to taxation, the prospect of a global crypto regulatory framework remains high. Should jurisdictional variations in tax codes provide tax arbitrage opportunities, this could become all the more important.

Legislators have made distinctions between crypto protocols as tax codes diverge geographically.

Stablecoins Regulation

A hearing on stablecoins was held by the US Senate Committee on Banking, Housing, and Urban Affairs late last year.

At the hearing, the focus was on how they work, how they are used, and what their risks are. Stablecoins like USD Coin (USDC) came under scrutiny from lawmakers, who asked some tough questions to stablecoiners.

Government crypto market scrutiny is increasing worldwide, which coincides with an increase in activity. Digital assets and crypto mining have also been a focus for the governments of the UK, India, the EU, and China.

The Treasury Department highlighted concerns about money laundering and the NFT market just last week. U.S. authorities were alerted to an increase in illegal activity during a period of soaring trading volumes.