Argentina has announced new taxation for crypto transactions based on the existing credits and debts. The announcement came on Wednesday reversing the earlier exemptions granted to third-party payment service providers and businesses. The official decree read,
“The exemptions provided for in this decree and in other regulations of a similar nature will not be applicable in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation and/or any other operation on cryptoassets, cryptocurrencies, digital coins, or similar instruments, in the terms defined by the applicable regulations,”
Crypto transactions made by individuals were considered exempt from taxation earlier, however, the new regulations effective immediately would now incorporate tax on individual transactions as well. The crypto taxation comes just months after speculations about the Argentinian government looking to incorporate cryptocurrencies in the financial system. There were rumors about possible El Salvador adoption, however, the government denied working towards any such regulations.
Argentina Not the First Country to Tax Cryptocurrency
Argentina is not the first country to impose taxation on crypto transactions, earlier Sout Korea has also imposed a 30% taxation on crypto transactions which is set to come into effect in the coming year. While most of the counties are trying to incorporate crypto taxation based on the current rules, but the likes of South Korea have developed complete regulations separately. The Argentinian President had earlier said that the crypto market has become too big to ignore now, hinting at positive regulations.
Crypto adoption is at its highest this bull season, and El Salvador’s adoption of Bitcoin as legal tender only pushed other nations to regulate crypto faster. While several countries lauded El Salvador for its move and even hinted at following on a similar path, but most of these countries backed out at the last moment.