Currency exchange in Argentina.
The images are from Quique Kierszenbaum.
Argentina is now taxing the sale and purchase of cryptocurrencies after the government updated its rules.
In Argentina, a "check tax" of up to 0.6% on credits and debits is placed on banking transactions. Transactions involving digital currencies were not considered to fall under the rules.
The tax collection measure affects payment service providers.
The exemptions provided for in this decree and in other regulations of a similar nature will not apply in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation and/or any other operation on cryptocurrencies.
The clarification came into force immediately and means that businesses with Argentine bank accounts are expected to comply with the tax rules. Local brokers are likely to be hit harder by the measure.
The adoption and popularity of digital assets is leading governments to look at the industry as a potential source of tax income.
The new rules for the reporting of transactions over $10,000 were brought in by the US infrastructure bill signed on Monday. According to The New York Times, taxes on digital assets could raise as much as $28 billion.
A senior executive at an Argentine exchange told CoinDesk that the tax decision by the government in Argentina is likely to drive up the price of cryptocurrencies.
It could open the door for regulators to take action on digital assets. In August, the president of Argentina's central bank raised risks around price volatility and consumer protections as officials were closely watching them.
He said at the virtual meeting that they were concerned about the development of cryptocurrencies.
Business Insider has an original article.
