Bitcoin, regulation in Argentina?

By Little Bull | Cryptos.News | 6 Feb 2021


While the world of cryptocurrencies is gaining more and more strength in Latin America, either because of the socio-economic situations of the countries or because of mere global interest, the reality is that in Argentina this interest is getting stronger every day, and not only for investors, but also for the clutches of the state.

Currently Argentina leads the Latin American countries where its population has a good rate of interest in the cryptographic world, and at a global level it is not far behind.

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The Argentinean government is well aware of this, and while the merval (Argentina's stock market) falls and moves cents with respect to bitcoin alone, politicians are not resting in the task of organizing a bitcoin regulation.

This was not born overnight and back in 2013 some project was mentioned, as well as in 2015 with the argument of preventing money laundering, although it is really common in Argentina to propose regulatory projects with that argument.

Fortunately for investors, the big problem of the outdated Argentine policy is how to regulate a digital currency, although in recent times there have been many digital banking apps that are regulated by the central bank, even so it is not the case of bitcoin and its peers.

Today there is no general regulation in Argentina, due to the exception of having undeclared assets, in addition to the fact that as long as the assets do not touch a regulated bank they should not be in view of the state Alcon's eye. If this is the case, already since 2017, cryptocurrencies fall within the assets that pay "income tax" which today amounts to just over 35%.

But there is a question that could easily come out of a coffee chat: If the state cannot know if the assets had profits or not, how could they claim income tax, since the asset in use is already exempt from taxes to be paid and not having profits should not pay taxes either.
Faced with this dilemma, the position is to maintain the constitutional principle of freedom in order to foresee possible legal problems on the part of the Argentine State. Besides, one of the risks is to set a precedent that would problematize future attempts to intervene in the asset, and in the hands of the surgeon this maneuver has to be perfect, politicians know that there is a lot of money involved and in the absence of a strong social position in favor of intervening, they prefer to be cautious.

It is really a pity that while many nations are adopting digital currencies and procedures in their central banks, in countries like Argentina one of the biggest monetary benefits is being hindered.

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Currently there is an NGO that faces this situation and is protected by the legal framework and in the words of one of the lawyers of the organization: "Argentina must take the lead, leave this model of copying and favor an economy that works freely, without so many regulations".

 

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Little Bull
Little Bull

Argentinean blogger.


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