Argentinian Tax Agency Amps Up Scrutiny for Crypto Traders and Holders With New Requirements

The Argentine Tax Agency (AFIP) monitors the movements of traders and holders of cryptocurrencies, to tighten control over these transactions. The institution is now sending emails to Argentines requesting a series of data on cryptocurrency operations allegedly made in its name. The agency requires a citizen’s public key and a list of transactions performed over a period of time.

Argentine Tax Agency to Examine Crypto Users

AFIP, Argentina’s tax watchdog, has decided to fight against cryptocurrency tax evasion directly to users of the currency. While the agency has required information from the exchange before, the responsibility is now directed to the specific user who has received a conditions to answer a series of questions about its history with digital assets.

The requirement forces users to submit data such as the public key of the wallet they are managing, and a list of digital asset movements that must include the date, the cryptocurrency involved, the amount transferred, and the type of operation. Furthermore, citizens must correct the origin of the funds used to perform the transaction and the full crypto savings withheld.

The information needed is to include transactions going back to 2018, so the numbers could be very high, according to Germán Nlhoul of Criptocontador.

Different Expert Opinions

Opinions of experts in the country are divided about this new AFIP move. Some think that the institution has the right to require such information from crypto users. This happened to Juan Manuel Scarso, a fintech tax expert who explains:

[The AFIP] has broad powers to verify, at any time, including with respect to the current fiscal period, compliance to be made or who is responsible for laws, regulations, resolutions and administrative instructions, monitoring situations for which it is deemed responsible.

However, others differed in their opinions and stated that the Argentine Tax Agency may have been overreaching by requiring some of this data from citizens, without clearly stating the purpose of the requirement. This happened to Mariano Neira, who stated:

Among the requirements on widespread crypto assets, excessive information demands as well as a clear influence on patrimonial intimacy can be observed.

This information is already required by the organization of the exchange, which must comply with these requirements by law. However, some have speculated that this pivot is due to the exchange not complying with regulations, forcing agencies to seek info from other sources.

What do you think about the Argentine Tax Agency investigating cryptocurrency holders and traders? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself late in the game, entering the cryptosphere when the price hike happened in December 2017. Having a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different perspective. about the success of crypto and how to help people who don’t have a bank and don’t have services.

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