Mark Weaden
Depending on where Argentinian citizens live they may have to pay crypto taxes for holdings and exchanges
Argentina has had a booming crypto scene for over a year now, with native cryptocurrency exchange Ripio a popular choice among traders. For a long time, the government has left citizens to trade freely, without intervening or regulating things. But, there is a new crypto tax paradigm being tabled in Argentina, with two provinces now approving crypto tax laws.
For the states that have now had tax laws implemented, citizens must now disclose their cryptocurrency holdings and pay taxes to declare the trades they do in the provinces of Tucuman and Cordoba. The government has decided that cryptocurrencies should now be grouped with all other international currencies, meaning that they are now subject to taxation.
Cryptocurrencies To Be Taxed In Certain Provinces
While many crypto enthusiasts would be sad to see cryptocurrency taxes arrive in Argentina, taxation likely means regulation, which is a step in the right direction for crypto in Latin America. In the aforementioned provinces of Tucuman and Cordoba, citizens must now declare their earnings and pay taxes on crypto holdings.
The new Argentina cryptocurrency regulation law adopted by these provinces stipulates that cryptocurrencies will be taxed like other international trading assets. The amendment to article 223 relates to the ‘purchase and sale of foreign currency and government securities,’ as such this relates to digital currencies and any related assets, which would include NFTs.
In Cordoba, cryptocurrency is to be taxed, but in this province, it extends this tax provision to people or companies receiving payments in cryptocurrencies for the products or services. The crypto sphere in Argentina has extended to payments for goods and services in a variety of industries across the country, as such aspects of the law change are quite relevant.
The Popularity of Cryptocurrency in Argentina
The inclusion of cryptocurrencies in tax law is something we’re seeing across the globe, due to the rising popularity of digital currencies and digital assets. As well as the ownership of these currencies, the use of these currencies for payment is prevalent in Argentina.
The Argentinian government previously held a stance of distancing itself from crypto, but they are now seeing the lucrative aspect of taxing it as an income source. Moreover, the government needs a level of control over the movement of money into digital currency, otherwise, the situation may get out of control.
As an alternative to managing finances, citizens of Argentina are looking to other countries, amidst a turbulent time for the national currency, the Argentinian Peso. This became even more apparent during the pandemic, which made the country’s economic situation even worse.
