• Argentina Declares a New Tax on Crypto Transactions

  • Argentina has announced new crypto transaction taxes based on existing credits and debts. The announcement was made on Wednesday, and it reversed previous exemptions granted to third-party payment service providers and businesses. According to the official decree,

    “The exemptions provided for in this decree and other similar regulations 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 cryptoassets, cryptocurrencies, digital coins, or similar instruments, as defined by the applicable regulations,” the decree states.

    Individual crypto transactions were previously exempt from taxation; however, the new regulations, which go into effect immediately, would now include tax on individual transactions as well. The crypto taxation comes just months after rumors circulated that the Argentine government was considering incorporating cryptocurrencies into the financial system. There were rumors about possible El Salvador adoption, but the government denied any such regulations were in the works.

    Argentina is not the first country to impose a tax on cryptocurrency.

    Argentina is not the first country to tax crypto transactions; earlier this year, South Korea imposed a 30% tax on crypto transactions, which is set to go into effect in the coming year. While most countries are attempting to incorporate crypto taxation based on current rules, South Korea, for example, has developed complete regulations separately. The Argentine President previously stated that the crypto market has grown too large to ignore, implying that positive regulations are on the way.

    This bull season, crypto adoption is at an all-time high, and El Salvador’s adoption of Bitcoin as legal tender has only pushed other countries to regulate crypto more quickly. While several countries praised El Salvador’s decision and even hinted at following suit, the majority of these countries backed out at the last minute.

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