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The government of Portugal recently moved not to levy taxes on cryptocurrency, which has enjoyed a tax-free status in the European country since 2018.

The leftist and socialist parties Bloco de Esquerda and Livre had proposed two new bills for taxing profits from digital currencies exceeding 5,000 euros, but both bills were voted down earlier this month by Portugal’s congress.

The country has already been a tax haven for crypto investors, with Lisbon offering zero taxes and attracting entire "Bitcoin families." One “You don’t pay any capital gains tax or anything else in Portugal on cryptocurrency,” Didi Taihuttu told CNBC. “That’s a very beautiful Bitcoin heaven."

America treats cryptocurrency like digital property and taxes it like stocks, but Portugal treats it as a payment. “This makes Portugal a really attractive place for crypto users to live,” Chandrasekera told CNBC.

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“The crypto industry is nascent and it shouldn’t be subject to the same rate applicable to capital gains on equivalent income as it will be unfair,” Derek "Isaac" Kaplan, founder of DuoVerse and VMining, told Cointelegraph. “This development reflects that crypto-friendly sentiment goes strong in Portugal.”

"While a regulatory framework is important, we need to give the industry the space to grow,” he added.