Argentinian Government Ready to Take Advantage of Crypto Holder

[wxa7115]

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.

Something like this was to be expected, if you leave a fiat trail that connects you to bitcoin or altcoins and your identity was exposed at some point then sooner or later the government will come to your door and ask for what they think it belongs to them.

However they cannot deal with the P2P usage of bitcoin, if you do not leave a trail that leads back to you then they cannot possibly know that you are holding any bitcoin, so a system like this is never going to be perfect and many people will be able to avoid becoming part of such database if they want.

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[yhiaali3]

This is expected from governments, we have a very popular saying here that says: “The government milks the ant.” This means that the government strives to find taxes by means that no one would think of, in any case, if collecting taxes from holders of cryptocurrencies makes cryptocurrencies legal in the country, then this It is okay because in this case you will not commit a violation of the law if you own or trade in cryptocurrencies, I think this will be better for holders of cryptocurrencies in the long run.

[Gyfts]

It would be illogical for governments not to think about such things, it is in their interest to try to collect as many taxes as possible, but even more to control the flow of money. All this, of course, in order to prevent money laundering, terrorist financing, and various crimes

They've used this excuse before because it's palatable to most people that don't think past what the government tells them. Most people are willing to give up most of their liberties in the name of safety, so any false promises that the government produces will be done under the name of safety, including crypto regulation. Some European nations have invoked the same arguments citing terrorism as their reason for regulating crypto currency, when no such evidence exists of widespread crypto use amongst these people. They're just interested in the tax money.

[ShowOff]

Starting May 1, 2022, the Indonesian government through its ministerial regulation has set a tax for crypto traders that is levied directly on licensed exchanges whenever a trader makes a transaction "sell or swap". We have to pay 0.22% as tax every time we sell our crypto to fiat and that rule has been in effect since May 1 yesterday.

It is clear that the government will maximize every opportunity to profit from crypto traders so we have no way of evading taxes except never selling anything to fiat until recently. The smart move was that they didn't give us the freedom to self-report the amount of tax we had to pay, but they did issue a rule and require the exchange to do it for them. The same might happen in other countries especially if crypto trading and investing is legalized.

[mindrust]

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. 

You just have to hide your crypto from the government but it is nearly impossible unless you buy your crypto OTC or mine yourself using a small rig. Any other option would leave you unprotected against the government attacks. Once they know that you have crypto or you have a way to earn them, they'll want their cut. If you can manage to make your crypto anonymously then there is no reason for them to know about your holdings.

[justdimin]

Something like this was to be expected, if you leave a fiat trail that connects you to bitcoin or altcoins and your identity was exposed at some point then sooner or later the government will come to your door and ask for what they think it belongs to them.

However they cannot deal with the P2P usage of bitcoin, if you do not leave a trail that leads back to you then they cannot possibly know that you are holding any bitcoin, so a system like this is never going to be perfect and many people will be able to avoid becoming part of such database if they want.

P2P is definitely the way to go if you want to stay anonymous fully. They will know that there is money in there but they wouldn't know where that money is going or coming from and when you do p2p to sell it back then they will not be able to follow you anymore, instead they will follow another person.

If they catch that person then that person gives your name is the only way so try to do it overseas so that you wouldn't really be known, sell to someone else in another nation and you will not be known, or try to give no information and get it in cash, that way even if the person is caught then they can't give you up since they do not know who you are.

[Pejoh Asu]

When the government wants to benefit from the crypto holder, it is like the government to immediately legalize crypto, in my country the same thing happens, in some exchanges they state that every trading and withdrawal pieces must be deducted for state tax crypto for transactions.

[Zlantann]

Crptocurrencies trading is business, hence traders are expected to pay tax to the state. But taxing crytos would be very difficult because the beauty and uniqueness of crptocurrencies is decentralization and privacy. The government might not be able to get and keep accurate data of cryptocurrencies users because most of them choose to be anonymous. It would only be effective if non-custodial wallets are linked with the government tax database which is highly unlikely.

[wxa7115]

Starting May 1, 2022, the Indonesian government through its ministerial regulation has set a tax for crypto traders that is levied directly on licensed exchanges whenever a trader makes a transaction "sell or swap". We have to pay 0.22% as tax every time we sell our crypto to fiat and that rule has been in effect since May 1 yesterday.

It is clear that the government will maximize every opportunity to profit from crypto traders so we have no way of evading taxes except never selling anything to fiat until recently. The smart move was that they didn't give us the freedom to self-report the amount of tax we had to pay, but they did issue a rule and require the exchange to do it for them. The same might happen in other countries especially if crypto trading and investing is legalized.

What happens with those tax laws is that the government always thinks that people are going to remain doing the same thing even after they pass a law like this, but people will instead adjust their behavior.

If exchanges will retain the taxes that you are supposed to pay automatically then people will begin to avoid centralized exchanges and move to their decentralized counterparts, will everyone do it? Of  course not, but enough people will do it and this will reduce any income they expected to get from a law like that.

[Sithara007]

My advice to the Latin American shit socialist regimes such as the one in Argentina - first take care of your own incompetence, and after that you can go after the cryptocurrency holders. Argentina is a country that has defaulted on its own debt repayment every 5 years or so. Given the digital nature of this asset, if the government tries too hard then the users will simply sell their assets in other jurisdictions and in the end the Argentine treasury will lose whatever little amount it was supposed to receive. Maybe they should take a lesson or two from the Indian government on how to regulate crypto.

[wxa7115]

My advice to the Latin American shit socialist regimes such as the one in Argentina - first take care of your own incompetence, and after that you can go after the cryptocurrency holders. Argentina is a country that has defaulted on its own debt repayment every 5 years or so. Given the digital nature of this asset, if the government tries too hard then the users will simply sell their assets in other jurisdictions and in the end the Argentine treasury will lose whatever little amount it was supposed to receive. Maybe they should take a lesson or two from the Indian government on how to regulate crypto.

That is never going to happen, when a government fails at the most basic of their functions instead of admitting their mistakes and accepting their responsibility they do what they always do, which is to blame someone else for the problem, even when they know that it is impossible that anyone else is responsible for what is happening, they will do so anyway.

However the people of Argentina have adapted to their reality so I have no doubts that many people will find ways to avoid paying those taxes in some way or form.