The regulation of cryptocurrencies in the Dominican Republic is still uncertain. The country's central bank does not recognize crypto assets as legal currency, and users are advised to be cautious when using them.
Legal Status of Cryptocurrencies in the Dominican Republic
The Central Bank of the Dominican Republic has issued several statements confirming that crypto assets are not government-backed and are not considered fiat currency. This creates uncertainty in the legal status of cryptocurrencies in the country, and no bank is allowed to accept cryptocurrency as payment for debts.
2022 Virtual Asset Legislation
In 2022, the government of the Dominican Republic enacted new virtual asset legislation, entering into an agreement with the TRON platform. This collaboration aims to establish national blockchain infrastructure and integrate the country into the global economy.
Cryptocurrency Taxation in the Country
The country follows territorial tax rules, and income earned from cryptocurrency activities is subject to taxation. For example, corporations are taxed at a rate of 27%, while residents are taxed at 25%.
The Central Bank of the Dominican Republic informs the population about the risks associated with cryptocurrencies but does not prohibit their use. Despite the lack of a clear legislative framework, cryptocurrencies such as Bitcoin remain popular among users.
