Argentina’s tax authorities (AFIP) are monitoring the movements of traders and cryptocurrency holders to tighten control over their transactions. The institution is now sending emails to Argentine citizens requesting a set of details on alleged cryptocurrency operations carried out in their name. The agency needs the citizen’s public keys and a list of transactions made over a period of time.
Argentine tax authorities to scrutinize crypto users
The AFIP, Argentina’s tax watchdog, has decided to target the fight against tax evasion on cryptocurrency directly to users of these currencies. While the agency previously required information from exchanges, the responsibility is now directed at certain users who have been given a requirement to answer a series of questions about their history with digital assets.
The requirement forces users to provide data such as the public keys of the wallets they currently manage, and a list of digital asset movements that must include dates, the cryptocurrencies involved, the amounts moved, and the type of operation. In addition, the citizens have to justify the origin of the funds used to carry out these transactions and the entire crypto savings that are kept.
The information required is to include transactions dating back to 2018, so the numbers could be very high, according to Criptocontador’s Germán Nlhoul.
Opinions of experts in the country are divided on this new move by the AFIP. Some believe that the institution has the right to demand this information from crypto users. This is the case with Juan Manuel Scarso, a fintech tax expert who explained:
[The AFIP] has broad powers to verify at all times, including with regard to current tax periods, whether the debtors or responsible persons comply with the laws, regulations, resolutions and administrative instructions, monitoring the situation of each alleged responsible.
Others, however, disagree, arguing that Argentina’s tax authorities may be going too far by requiring some of this information from citizens, without clearly stating the purpose of these requirements. This is the case with Mariano Neira, who stated:
Among the requirements for crypto-assets in circulation, an excessive request for information and also a clear violation of patrimonial intimacy can be observed.
This information is already required by the organization of the exchanges, which are required by law to meet this requirement. However, some have speculated that this pivot is due to the exchanges not being compliant with regulations, forcing the agency to seek the information from other sources.
What do you think of the Argentine tax authorities investigating cryptocurrency holders and traders? Tell us in the comments below.
Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as late in the game, he entered the cryptosphere when the price surge happened in December 2017. With a computer engineering background, living in Venezuela and influenced by the cryptocurrency boom on a social level, he offers a different point of view on crypto success and how it helps the unbanked and underserved.
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