As governments slowly shackle the crypto industry with regulations and duties, Portugal is more and more remoted in Europe — an area with few guidelines that investors describe as a crypto paradise.

“You don’t need to do anything else because you already have a perfect system, with zero percent tax on bitcoin,” said Didi Taihuttu, a prominent crypto enthusiast who shifted his family to Portugal from the Netherlands.

“For bitcoin, it’s heaven,” he added.

Financial authorities throughout the globe are grappling with fundamental questions on cryptocurrencies.

Firstly, are they currencies or assets? If they’re assets, how do you categorize and tax them?

Right now, Portugal is one of the remaining international locations in Europe to treat them as currencies from a tax point of view, which means income from buying and selling is not taxed.

The finance ministry informed AFP it became reviewing the state of affairs and wanted a commonplace European framework, but stress is constructing for quick movement.

Mariana Mortagua, a far-left MP, called recently for pressing law and summed up the scenario bluntly: “Portugal has grown to be a tax haven.”

Even those in the crypto industry accept that things will have to change.

“It’s hard to justify other financial assets being taxed at around 28 percent but not cryptocurrencies,” said Pedro Borges of Criptoloja, the first crypto exchange registered in Portugal.

“Portugal needs more jobs and economic growth,” he said. “So why stop the evolution of technology and money?”