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Argentina imposes a new tax on crypto

Fri 19 Nov 2021 ▪ 11h25 ▪ 3 min read — by Katie Donaldson

Legislators in Argentina have just announced a new tax rule for crypto exchanges operating in the country. A “check tax” of up to 0.6% will be placed on certain banking transactions.

Effective immediately

The official decree was published by the office of President Alberto Fernandez on Wednesday, 17th November. Crypto exchanges used to be a part of an exemption that applied to fintech companies registered as payment service providers (PSP) before the decision was made. Cryptocurrency transactions were seen as cash transactions.

“The exemptions provided for in this decree and in other regulations of a similar nature will not be applicable in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation and/or any other operation on crypto assets, cryptocurrencies, digital currencies, or similar instruments, in the terms defined by the applicable regulations,” the document says.

The new measure is effective immediately. The new tax is very likely to drive up the price of cryptocurrencies for traders buying in pesos since exchanges are likely to pass the burden onto them. People are also likely to switch to peer-to-peer exchange platforms and non-custodial wallets.

Developing the market

In 2017, a reform of the country’s tax code extended the income tax to capital gains earned from transactions that involve Bitcoin (BTC) and other cryptocurrencies. This and the new rule are just the first steps in a long road to a comprehensive regulation system and attracting new investors to the country’s market.

In September, Miguel Pesce, the President of Argentina’s central bank, said that the bank intends to “closely monitor” the crypto market. “We are concerned about the development of cryptocurrencies,” he added.

The head of the central bank also rejected the idea of supporting the legalisation of Bitcoin and the creation of a central bank digital currency (CBDC).

The Argentine government has just announced a new tax on transactions involving crypto assets. The taxation is subject to the government’s cheque tax.

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Katie Donaldson avatar
Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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