The government must find specific targets, so it needs money. The cryptocurrency industry embraces at least one-quarter of Argentine funds.
2022 would get marked in Argentine economic history, and it could also be the year the country refinanced its most prominent historical debt with the International Monetary Fund. The Latin American nation must comply with some measures that would affect bitcoin (BTC) holders.
In 2018, during the ruling of Mauricio Macri, Argentina arranged an agreement with the IMF on a loan of at least 57.1 billion dollars. According to Christine Lagarde, which is its former director, the loan appeared to be the most prominent disbursement in the history of the IMF.
The expiration of the payments to seal its debt, one of them of at least USD 2,800 million scheduled for March 2022, pushed the Argentine State to connect through a series of conversations with the multi-national fund to reach an understanding to comply with the required guidelines and find a solution to the problem.
The government led by Alberto Fernández promised to execute some changes in monetary, economic, and financial policy. In the next years, exactly the next two years, Argentina would have to achieve some goals connected to the fiscal deficit, money issuance, and even tax administration. The cryptocurrency environment could become a vital player in the game on this last point.
The Role that Bitcoin Would play in Argentine Taxation
According to various sources, bitcoin and other cryptocurrencies could get harmed by these new measures taken in Argentina. Some of these projects set up strategies to regulate cryptocurrencies and are now waiting for a proper advance in Congress.
The main reason for the failed attempts to take these measures to Congress is the growth of this industry in the country. According to various reports, the blockchain data analyst company called Chainalysis highlights that the cryptocurrency market in Argentina approached a figure marked at USD 68,000 million.
This amount got only exceeded by Brazil. The figure in Argentina represents more than 25% of Argentine funds in dollars outside the system. The amount currently runs in parallel with 17% of the country’s foreign assets and is 10% higher than the valuation of Mercado Libre, which is a company currently listed at USD 60,000 million.
Considering the urgency the nation has to get more dollars, and with its current reserves in the Central Bank crumbling down consistently, the Federal Administration of Public Revenues could set up more harsh controls on cryptocurrency holders.
This measure got already clarified before reaching the agreement with the IMF. Those who carry out activities with bitcoin and other cryptocurrencies in Argentine regions know that they must comply with these taxes.
The Argentine provinces have already started to play a vital role in the bitcoin environment. Some of the mentioned areas, such as Córdoba, Tucumán, Entre Ríos, and recently Catamarca, have already made legislations on the payment of Gross Income from the profits that come mostly from arranging trades and other activities with cryptocurrencies.
2022 may turn into a crucial year for bitcoin in a country like Argentina. The country is currently required to achieve goals like cutting spending, raising money, and preventing more taxpayer funds from abandoning the current system.
Although there is no official statement at the moment, there is a slight possibility that the State will see this industry as an oasis filled with benefits.
By: Jenson Nuñez
