Citizens in Argentina Might Have to Pay Crypto Taxes Depending on Location

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Citizens in Argentina Might Have to Pay Crypto Taxes Depending on Location

At least in some provinces, cryptocurrency taxes are now available in Argentina. Users who trade or hold cryptocurrency must now declare their ear

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At least in some provinces, cryptocurrency taxes are now available in Argentina. Users who trade or hold cryptocurrency must now declare their earnings and pay taxes in at least two provinces, Cordoba (or Tucuman). This is due to a new provincial regulation that states that cryptocurrencies will be treated the same as other international currencies when they are traded.

These two provinces now treat cryptocurrencies as international currencies. Recently, the province of Tucuman approved an Amendment to Article 223 of law. It states:

Foreign currency purchase and sale. This subsection covers the operations of buying and selling digital currencies.

Cordoba, another province, approved a similar resolution earlier in the year. However, it extends this tax provision for people or companies that receive payments in cryptocurrency for their products and services.

Cryptocurrency is becoming more popular

Due to cryptocurrency’s growing popularity as both an asset class as well as as a payment method, several countries are considering including cryptocurrencies into the laws. The government is realizing that regulating cryptocurrency payments could be a loss for their lucrative income stream.

Mexico’s government has actually recommended that this type of transaction be taxed with a 20% fee. After a limit was placed on the amount of dollars citizens could purchase each month, cryptocurrencies began to gain momentum in Argentina. This was the turning point for Argentina, which was not well-known for its cryptocurrency involvement. It allowed citizens to start to invest in crypto tools that offered a savings option in the midst of the above situation.

It’s not just cryptocurrency that is making a comeback in Argentina. Because of its low energy costs, Argentina has been a popular choice for bitcoin mining companies such as Bitfarms. Bitfarms is currently building an advanced Bitcoin mining farm to take advantage the cheap energy rates.