Argentina’s tax administration appears to be keeping a close eye on the cryptocurrency space.
Argentina Monitoring Crypto Exchanges
Cryptocurrency exchanges in Argentina are now required to file data to tax officials, local news outlet Bae Negocios has reported .
The exchanges will be required to share details of all accounts, identify clients, and submit balances associated with accounts to the AFIP. They’ll have to submit files for a month before the 15th of the following month.
The AFIP isn’t the only body clamping down on the cryptocurrency taxes: the IRS has been particularly proactive in collecting taxes, ordering exchanges like Coinbase to file data on clients. Only a few weeks ago, the U.S. body launched a new operation to find tax evaders. Anyone caught potentially faces jail time, the IRS Criminal Investigation Division Chief James Lee said at the time.
Argentina has been enjoying a wave of crypto adoption in recent years, fueled in no small part by a long-running debt crisis. Local exchange Ripio has grown at a fast pace amid growing demand for digital assets, recently acquiring the Brazilian exchange BitcoinTrade. Meanwhile, the government has a debt burden of about $323 billion.
The country has historically faced economic problems. Its 46.3% inflation rate is among the highest in the world, something that the Coronavirus pandemic helped intensify. Against the backdrop of local currency devaluation, many have turned to digital assets such as Bitcoin to preserve their savings.