There has been enormous growth in the cryptocurrency markets in Argentina. Recent estimated numbers show that millions of people buying and trading digital assets within the last few months, are due to a current nationwide debt crisis. Cryptocurrency popularity and growth has brought with it the attention of the Country’s Federal Administration of Public Revenues (AFIP)
The AFIP has launched a document called Form 8126 for virtual exchange to report crypto transactions. Exchanges will be required to share details of all accounts, identify clients, and submit balances associated with accounts. Included in the requirements, is the stipulation that all data files must be submitted thirty days prior to the 15th of each month. The measure not only affects virtual exchanges, but also payment service providers, such as Mercado Pago.
Meanwhile, there are different bills that seek to establish a regulatory framework for virtual currencies in the Argentina Chamber of Deputies. One was prepared by the deputy Ignacio Torres from PRO, while the other is on behalf of Liliana Schwindt and Marcos Cleri, from the Frente de Todos. Both proposals are similar in that they would institutionalize blockchain-based instruments to allow banks to make custody of crypto assets , protect users for the sale and promote capital investment in firms in this branch of activity.
Argentina is not the only country going after crypto profits, the U.S Government has been cracking down on crypto tax evaders as well. The IRS is making efforts to find crypto tax cheats. In April, a federal judge in Boston approved an IRS summons to the payments company known as Circle and its affiliates, including Poloniex, to turn over customer records to the agency. The IRS has been putting pressure on Coinbase for the data files on its clients. In early May, a federal judge in San Francisco approved another IRS summons for records to the crypto exchange known as Kraken. In both cases, the turnover applies to customers who had more than $20,000 in transactions in any year from 2016 through 2020
Nevertheless, using Bitcoin and other digital assets have been a way of life for many living in Argentina. The country has historically faced economic problems. Its 46.3% inflation rate is among the highest in the world. The country, like many others, have been hit hard by the Coronavirus pandemic.
