Argentina sets example for Crypto regulation amidst global uncertainty

Argentina sets example for Crypto regulation amidst global uncertainty

From Australia to Venezuela, every country is analyzing its digital asset management regulation frameworks after the recent collapse of banks in the United States. Argentina shows proactiveness among the countries that currently planning to execute a concrete policy on digital assets management. 

The Administraci├│n Federal de Ingresos P├║blicos  (AFIP) took strict measures against crypto regulation in the country. Argentina identified nearly 184 taxpayers who hide their crypto and digital assets in their tax statements. According to the reports, the AFIP has been observing these irregularities since last year when the taxpayers failed to provide the data of their digital assets and cryptocurrencies holdings in their 2021 tax statements. 

The AFIP declared that the 184 digital wallet tax statements were found with mismatches of about $7.6 Million. Some taxpayers have underrated their digital assets to avoid taxes imposed by the AFIP. The probe ran for many months but now the reports have been made public. 

Some people were shocked at how they were able to track the amount of undeclared digital assets as the data was only limited to the wallet exchange provider and the customers. The Argentine tax authority can track the amount because of the information provided by the wallet providers and crypto exchanges as it comes under the frameworks set by the AFIP. 

In October 2022, the AFIP traced discrepancies in the accounts of 4000 taxpayers. In the statement, the authority said, “You are reminded that the results derived from the disposal of digital currencies are covered by the Income Tax and, if applicable, you must proceed to externalize them in the relevant affidavits as well as their possession.” 

Where countries worldwide are currently struggling to come up with comprehensive crypto legislation, Argentina found itself somehow ahead. After the back-to-back collapses of three major crypto-friendly banks, the Silvergate bank, the Silicon Valley Bank, and the Signature bank in the United States, countries are more alert than they were before. Argentina’s action against crypto irregularities will send a clear message to the stakeholders to comply with the existing laws and act accordingly. 

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