In Brief:
- Argentina’s President office announced that authority plans to impose a tax on crypto exchange platforms linked with Argentina Banks
- Before this Crypto exchanges were excluded from tax policy and considered PSP
- The implementation of tax can shift peer-to-peer exchange platforms and non-custodial wallets
The Government of Argentina announced that the country is planning to impose a tax on the crypto exchange platform and transaction activities on the platform.
Before this, crypto exchanges were excluded from tax strategy as the platforms were considered payment service providers (PSP) as the Fintech company class. At present, The government is taking 0.6% tax on the bank to credit and debits.
A senior executive from the Argentina exchange stated that the tax will implement on crypto exchanges that hold accounts in Argentina banks and prices of cryptocurrencies are likely to increase as companies will reveal new costs for customers.
Argentine entrepreneur and Cafecito founder Damian Catanzaro, who recently linked Lightning Network to the tipping platform said that after the implementation of the new tax rule, crypto users will go for peer-to-peer exchange platforms and non-custodial wallets.
Roberto Arias, Argentina’s Tax Policy Secretary made clear on Twitter that the move is not a tax on cryptocurrencies, despite it will “provide greater certainty” on the crypto exchanges operations.
This is not the first time when cryptocurrencies exchanges got attention from authorities in Argentina. In September, Argentina Central Bank’s President, Miguel Pesce revealed that the bank was watching over the development of cryptocurrencies with “concern”. Also, In June, the bank had started an investigation of nine fintech companies to offer unauthorized financial intermediation through crypto-assets.
Recently, many counties are coming forward to impose tax policy on cryptocurrency. Austria has released new guidelines to take tax on crypto similar to stock and bonds.
