Argentina Cuts Taxes on Crypto Transactions and Exchanges in Updated Rules | Currency News | Financial and business news

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Currency exchange in Buenos Aires.

Quique Kierszenbaum / Getty Images

Argentina updated its “tax audit” rules on Wednesday to clarify that crypto exchanges are not exempt. This means that crypto sales and purchases are subject to a tax of up to 0.6% on bank debits and credits. The move is likely to drive up the price of digital currencies for those with Argentine pesos, according to a local expert.

Argentina now taxes cryptocurrency sales and purchases, after its government updated existing rules to clarify that cryptocurrency exchanges are not exempt from collection.

A “check tax” of up to 0.6% on credits and debits is imposed on banking transactions – such as cash deposits, wire transfers and checks themselves – in Argentina. But transactions involving digital currencies were not considered to be within the rules.

That changed on Wednesday, when the government explained how the tax collection measure affects payment service providers.

“The exemptions provided for in this decree and in other regulations of the same nature will not be applicable in cases where the movements of funds are linked to the purchase, sale, exchange, intermediation and / or any other operation on cryptographic assets, cryptocurrencies, digital currencies or similar instruments, under the terms defined by the applicable regulations, “he said in a decree updating the measure.

The clarification, which took effect immediately, means crypto exchanges and similar businesses with Argentine bank accounts would now have to comply with tax rules. The measure is likely to hit local brokers harder than those based abroad.

Governments around the world are seeing the crypto industry as a potential source of tax revenue, as the adoption and popularity of digital assets increases.

In the United States, an infrastructure bill enacted on Monday introduced new rules for crypto brokers, who must now report transactions over $ 10,000 to tax authorities. Taxes on digital assets could generate up to $ 28 billion in funds, The New York Times reported.

In Argentina, the government’s tax decision is likely to push up the price of cryptocurrencies for those who buy in pesos, a senior official at an Argentinian exchange told CoinDesk.

It could also open the door for more action on digital assets from regulators, as digital money explodes in the country. In August, Argentina’s central bank president Miguel Pesce spoke of the risks of price volatility and consumer protection as letter carriers kept a close watch.

“We are concerned about the development of cryptocurrencies,” he said in a virtual meeting, according to an article in local media Clarin.

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