Argentinian Government Ready to Take Advantage of Crypto Holder

[serjent05]

Argentinian Tax Agency Supports Creation of Global Crypto Report System to Avoid Evasion

The AFIP, the Argentinian tax agency, is supporting the creation of a centralized system that serves as a registry for cryptocurrency holders. According to statements from its head, this would make it easier for tax agencies all over the world to curb evasion. The organization has already made use of financial information to collect taxes from Argentinian users with bank accounts abroad.

As expected, The government will do the best they can to milk money from crypto holders.  This is the first time I read about the government creating a centralized record of the registry of the crypto holders in order to get tax on whatever profit the crypto holder has.  It looks like this is the start of the crypto tax collection exploit of the government.  I am sure after this one becomes successful, many countries will follow this example.  So we better expect that in the near future our very own country will do such a thing. Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell. 

[Yogee]

... .  This is the first time I read about the government creating a centralized record of the registry of the crypto holders in order to get tax on whatever profit the crypto holder has.

I guess it's the first country to make a public statement about this. I'm pretty sure countries that already had taxation laws on crypto gains or losses is maintaining a list of their own.

Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell.

You can still hide your crypto funds from them if you really wanted to but don't expect you can hide forever when you've been using centralized exchanges and custodial wallets in the past.

Some blockchains are not that decentralized by the way.

[Fatunad]

As expected, The government will do the best they can to milk money from crypto holders.  This is the first time I read about the government creating a centralized record of the registry of the crypto holders in order to get tax on whatever profit the crypto holder has.  It looks like this is the start of the crypto tax collection exploit of the government.  I am sure after this one becomes successful, many countries will follow this example.  So we better expect that in the near future our very own country will do such a thing. Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell. 

Not surprising which government would really be making out steps and laws which would really be focusing on taxing every crypto user specially holders considering that they are holding
millions of dollars which they wouldnt really like for them to miss out on what taxes that they could really get but the question is, on how they would really be doing  such
tracking or on how they would really extract those users? How they would know? Through CEX? I think this wont really be that much to be effective.

[AmoreJaz]

they may not get the whole picture of the crypto holdings of their people, but at least they will be getting something from this market. unlike those countries who are totally banning the crypto market. we all know that crypto users can hide some of their transactions and you can just disclose your other txs if you will use centralised platforms. their government may be realising that they can get a hold of some of their crypto users but definitely, they know, they won't get the entire crypto market of their people.

[Vaskiy]

With technology anything is possible. So, creating the centralized directory on the people using/holding cryptocurrency is possible. However this isn't going to be perfect. There'll be loop holes and people make use of it. The major focus is to overcome the tax evasion creating a universal directory that can be used by the tax agencies all around the world. In my view, the data collections on the users will be made connecting to the bank accounts. So, then onwards people show interest in direct usage.

[macson]

As expected, The government will do the best they can to milk money from crypto holders.  This is the first time I read about the government creating a centralized record of the registry of the crypto holders in order to get tax on whatever profit the crypto holder has.  It looks like this is the start of the crypto tax collection exploit of the government.  I am sure after this one becomes successful, many countries will follow this example.  So we better expect that in the near future our very own country will do such a thing. Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell. 

it has been predicted by many people that when crypto adoption becomes more widespread, we will see many countries trying to take advantage of bitcoin and crypto, whether it is by legalizing bitcoin or by imposing taxes on all bitcoin holders.  Currently, the government of my country has not imposed a tax on bitcoin holders here, there is a possibility that they will follow Argentina's footsteps.

[Don Pedro Dinero]

You can still hide your crypto funds from them if you really wanted to but don't expect you can hide forever when you've been using centralized exchanges and custodial wallets in the past.

Yes, my first thought is that those who have their private keys will be able to escape this system, but it will depend a lot on what they have done in the past.

Knowing what the Argentinian government has done in the past, things like this don't surprise me, they see money leaking out of people holding bitcoin, and they want to control it.

For anyone who doesn't know a bit of Argentina's economic history:

Corralito (Spanish pronunciation: [koraˈlito]) was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run which implicated a limit of cash withdrawals of 250 ARS per week (at that time 1 USD = 1 ARS).

https://en.wikipedia.org/wiki/Corralito

Argentina's currency board established a fixed pegging of one-to-one parity between the peso and the U.S. dollar. It also guaranteed full convertibility of pesos into U.S. dollars.

 In January 2002, the new president Eduardo Duhalde ordered his finance minister Jorge Remes Lenicov to repeal the Convertibility Law and adopt a new, provisional fixed exchange rate of 1.4 pesos to the dollar (a 29% devaluation) and the conversion of all the bank accounts denominated in dollars into pesos and its transformation in bonds ("Corralon"); soon afterward it completely abandoned its peg and allowed the peso to float freely, resulting in a swift depreciation of the peso, which lost 75% of its value with respect to the U.S. dollar in a matter of months, stabilizing at a rate of 2.9 pesos per dollar by 2003.

https://en.wikipedia.org/wiki/Convertibility_plan

[Vatimins]

     Well, if we really try to understand it, taxes after all are in no doubt just and vital responsibility of any country citizen. No one should really be exempted from this since it helps the country itself with a lot of things regardless of the corrupt government. What's wrong though is if governments impose unreasonable tax to use crypto enthusiasts which I wish they never do. Otherwise, goodbye custodial wallets and welcome back non custodial wallets. I really don't mind a few hassles if it protects me and my hard earned assets from unreasonable taxes and worse case freezing or total confiscation.

[Fortify]

Argentinian Tax Agency Supports Creation of Global Crypto Report System to Avoid Evasion

The AFIP, the Argentinian tax agency, is supporting the creation of a centralized system that serves as a registry for cryptocurrency holders. According to statements from its head, this would make it easier for tax agencies all over the world to curb evasion. The organization has already made use of financial information to collect taxes from Argentinian users with bank accounts abroad.

As expected, The government will do the best they can to milk money from crypto holders.  This is the first time I read about the government creating a centralized record of the registry of the crypto holders in order to get tax on whatever profit the crypto holder has.  It looks like this is the start of the crypto tax collection exploit of the government.  I am sure after this one becomes successful, many countries will follow this example.  So we better expect that in the near future our very own country will do such a thing. Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell. 

It's always interesting to see how different governments react to cryptocurrency and it does feel like Argentina are overstepping the mark a bit. If you bought cryptocurrency with money that is already fairly taxed and there is the assumption that you will properly declare any future earnings from it, that should be enough. However their current stance feels like huge overreach and could backfire by driving reporting further underground. While the notion probably sounds good and noble on paper, it's not going to work well in this form.

[tabas]

How they're going to know that a citizen is a holder? Unless that citizen declares and tells that he's a holder then they should know. But otherwise, the government will never know that someone is a holder unless being declared and proclaimed.
Well, this is where things are going for the governments to take advantage of the people that are into crypto, they should also regulate the local exchanges.

[Moneyprism]

no wonder that the government is trying their best to track down crypto owners and collect taxes from them... they try to regulate crypto circulation in their country as much as possible on the grounds that this is to protect crypto users in the country.. smh

[so98nn]

Nothing new as what other countries are doing right now. These days all of them copying each other. The taxation report is also compulsory in India. Finance minister Sitaraman did the same when they revised the bill for India-22-23 goals. The tax is not 2,5,10% but its whopping 30% on every crypto transaction which includes buying or selling of the assets in the crypto forms.

How they're going to know that a citizen is a holder? Unless that citizen declares and tells that he's a holder then they should know. But otherwise, the government will never know that someone is a holder unless being declared and proclaimed.
Well, this is where things are going for the governments to take advantage of the people that are into crypto, they should also regulate the local exchanges.

It is simply based on the bank records. When you buy and sell the crypto then your local exchanger will have to decalre the asset holdings with your KYC. Plus whenever you will be withdrawing the amount into your bank account or sending money to crypto exchanger, that's gonna be on record as crypto profits. So there you go, they know it.

[Kakmakr]

Well, there are two things wrong with your post...

1. Tax evasion is not the main aim for most people, when they use Crypto currencies. A lot of them just want to have faster and cheaper transactions ...and some financial privacy. (They do not want some government official snooping on their financial transactions)

2. Having a central database of all "Bitcoin holders" in their country, will not solve their tax evasion problems. There will still be a lot of people (criminals) that will use direct payments not registered on this centralized database to evade taxes. 

[kryptqnick]

I'm not sure what to think of this initiative. It says that it'll create a crypto holder registry (so, everyone who has cryptos is supposed to be on it?) to ensure taxes are being paid. Are there registries for those holding stocks, commodities, securities? Are there registries for people who hold their money in, say, foreign fiat, and then sell sometimes when the price is right (and with a huge inflation in Argentina, this can lead to significant profits)?
I think that treatment must be equal, and if it's more harsh for crypto holders than for everyone else, it's not fair.

[gantez]

I think collection of data of cryptocurrency users in Argentina means the government want to have a regulation to either collect tax and to know the rate of adoption in the country. I think it will be better if there is sincerity of regulation and not to ban the people account. Linking of accounts with KYC isn't decentralised.

[ultrloa]

I think collection of data of cryptocurrency users in Argentina means the government want to have a regulation to either collect tax and to know the rate of adoption in the country. I think it will be better if there is sincerity of regulation and not to ban the people account. Linking of accounts with KYC isn't decentralised.

Collection of data maybe means that they are tracking how big the number of crypto users and to know what law they can implement towards this. I also believe that many other country contributes to the decision on the country who want to regulate crypto and if they see how huge the user base of this technology for sure they will find ways to implement a taxation and they will provably start by getting the information on legal platform which is registered on their country. Hopefully the tax they ask to get is not so huge and fair to each crypto user out there.

[ethereumhunter]

It is not surprising that the government wants to take crypto taxes from their owners because the government sees cryptos as being able to provide a large income for the country. I think sooner or later, every government will apply a tax on crypto owners and the amount will depend on the policies of each government. After all, the government will have a way to collect taxes from crypto users and we must be really wise in using crypto so that the taxes we pay are appropriate.

[gantez]

Hopefully the tax they ask to get is not so huge and fair to each crypto user out there.

I believe is going to be a considering percentage for a start to encourage the people not to kick against it and to support it but I also believe it will be increased with time because government can not survive without generating money. If they push the percentage high it will be resistant to that policy which delay will come into it.

[hatshepsut93]

Well, big exchanges like Binance or Coinbase already cooperate with governments all around the world, so in some way they are registers of crypto holders, because they have KYC. I'm not sure how feasible it is to create a global register, governments would be wary of unlimited sharing of data about their citizens with each other, as that could cause trouble for them. Also using foreign banks to avoid taxes is not exclusive to crypto, so existing regulations should take care of it.

[Johnyz]

Argentina is experiencing a hyperinflation, too much money around will surely cost them a lot and maybe they are just trying to control it and help their economy to survive by raising more funds thru their taxation. The government can really impose this kind of law that requires people to pay their taxes, just like in other countries where it is already required. For me this is way better than to ban Bitcoin, people have to deal with the regulations, its inevitable.