Buenos Aires Unveils New Cryptocurrency Tax Policy
In a move that aims to regulate the burgeoning cryptocurrency market, Buenos Aires has unveiled a new tax policy that targets freelancers and businesses engaging in crypto transactions. Under this framework, individuals and entities that accept cryptocurrency and later sell it will incur a gross income tax of 6% on the difference between the purchase and sale price.
Tax Implications for Mining and Custodial Services
Additionally, companies involved in cryptocurrency mining and custodial services will be subject to a 4% tax based on their gross income from these activities. This initiative has been met with mixed reactions from experts in the crypto sector. While some believe that the new guidelines offer clearer tax obligations compared to previous arrangements, critics argue these measures hinder the industry’s growth.
Expert Opinions on the New Tax Framework
Local crypto expert Juan Manuel Scarso criticized the tax as regressive, arguing that it contradicts global trends towards embracing cryptocurrency. He emphasized that calling this tax moderate is misleading and detrimental to investment.
The introduction of this taxation framework adds to the increasing number of tax obligations the cryptocurrency industry faces in Argentina, with many exchanges warning of an impending crisis in the sector.
Julian Colombo, General Manager of Bitso Argentina, pointed out that the cumulative effect of compliance with new regulations from the National Securities Commission (CNV) and the added tax burden is making it difficult for businesses to operate effectively. He remarked that these financial strains could lead to higher user costs and deter investment in the market.
Impact on Cryptocurrency Adoption in Buenos Aires
Despite Buenos Aires’ efforts to promote cryptocurrency adoption, such as allowing citizens to pay municipal fees with digital currencies, this latest tax initiative could hinder the city’s aspirations to position itself as a leading hub for crypto innovation, as per statements made by its head, Jorge Macri, earlier this year.
