Friday, December 3

Argentina’s bitcoin tax could boost informal trade

Key facts:
  • Bitcoin operations will not be laundered to avoid paying taxes, says Fintech Argentina.

  • Fintech Argentina wants to dialogue with the government to improve the conditions of cryptocurrencies.

The Argentine Chamber of Fintech published a statement against the new tax on cryptocurrency operations established by the government of Alberto Fernández. The entity points out that this new policy does not benefit the industry and will only encourage Argentines to carry out “black” transactions without laundering or declaring.

As CriptoNoticias reported, since Wednesday, November 17, all people who buy or sell Cryptocurrencies, such as bitcoin, must pay a tax in Argentina. Faced with this new rule that the government established the same day it was announced, different figures in the country publicly expressed their discontent.

The Argentine Chamber of Fintech, the association that brings together various technology companies in the country, declared that the cryptocurrency tax goes against what they had discussed. His intention is to promote the use of these assets in the country, something that he believes will be more complicated with the new tax.

The news was unexpected, especially considering the intense joint work that our institution and various public bodies are developing within the framework of multiple regulatory initiatives, such as 3.0 transfers, among many others.

Argentine Chamber of Fintech, association of technology companies.

The incidence of the tax is still unknown and if it will be reflected in exchanges – cryptocurrency trading platforms – or sites peer-to-peer «P2P» -, where users can exchange assets among themselves. In case it is, its application will imply the increase of the tariffs of these companies, as they will have more expenses.

Be that as it may, the organization maintains that Argentines will find a way to operate without paying the tax, which will boost the informal market, as is the case with the blue dollar.

Miguel Ángel Boggiano, the director of Carta Financiera, an investment and financial markets advisory company, made a strong disclaimer on the matter. On his Twitter account, where he has more than 200,000 followers, he expressed that The new tax is another way the government found to steal from Argentines.

New tax on cryptocurrencies in Argentina limits fintech growth

This policy it will directly affect not only cryptocurrency users, but also companies in the industry. It is estimated that around 10% of Argentina’s fintechs are in the bitcoin and blockchain industry.

In Patagonia, for example, a pole was formed with 400 businesses that accept payments with cryptocurrencies. A Visa debit card was also recently launched that allows you to buy products or services with digital assets such as bitcoin.

This new national tax, which was signed by President Alberto Fernández, Chief of Cabinet Juan Luis Manzur and Minister of Economy Martín Guzmán, is not the only one in Argentina. It is the third that is imposed on the ecosystem of cryptocurrencies.

Recently, in Córdoba and Tucumán, the legislative power implemented taxes on the possession and sale of cryptocurrencies, such as bitcoin. Even in the first there is also one for those who charge for products or services on these assets.

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