Each exchange is free to decide whether to suspend transactions with the US fiat currency or not. It is difficult for exchanges to use the US dollars that they receive.
Attorney Ricardo Mihura Estrada is a specialist in cryptocurrency tax regulations and a member of the NGO Bitcoin Argentina. In recent days, he said that there are no limitations to buy Bitcoin, or any other cryptocurrency, with US dollars in Argentina.
Besides, he explained that, if an exchange no longer operates with US dollars, it is by its own choice rather than a legal limitation. He explained, “That is an issue of how they manage their own finances and what they do with the US dollars that they receive.” In this sense, he stated that this “surely gives them a headache as they cannot use that money.”
The matter is of relevance to the community that follows cryptocurrencies in Argentina, who were flooded with speculation about it when the exchange Buenbit removed the DAI/USD pair from its platform.
The suspension, which only lasted a few days, was due to “preventive reasons”, explained Federico Ogue, CEO of the company, in a statement that he posted in the official Telegram group “Buenbit community”.
The DAI/USD pair is the most popular to perform the operation known as “crypto curl”. Thanks to the difference between the official price of the US dollar (USD), and the one used in the real market when selling cryptocurrencies, this movement allows making a profit in Argentine pesos (ARS).
Other Matters within Exchanges
Also a lawyer, Daniel Rybnik, who coordinates the Legal and Accounting Committee of the NGO Bitcoin Argentina, explained that there is no exchange law violation if users send or receive cryptocurrencies to or from abroad.
Bitcoiner Franco Amati says that when someone receives money from abroad in Argentina, doing so in cryptocurrencies is one of the most effective options. This is so because the person can exchange them for Argentine pesos at the real market price.
Rybnik also explained something that frequently raises doubt among Argentine holders. He clarified that the owners of cryptocurrencies, being intangible assets, do not pay personal property tax.
Things are not so clear for those who provide services abroad and get paid in cryptocurrencies. The law requires them to deliver the foreign currencies that they receive to the banking system, in exchange for Argentine pesos at the official price. However, the Central Bank does not consider cryptocurrencies as currencies.
According to Mihura Estrada, the sale of cryptocurrencies at exchanges is increasingly close. However, he clarifies that this would not comply with the law because the system intends that all US dollars go to the Single Exchange Market that the Central Bank controls.
In his capacity as a lawyer, he assured that he would be willing to undertake the defense of a person accused of a foreign exchange offense for not having liquidated the cryptocurrencies that he received.
He explained that there are many defense arguments because “the rule is not clear at all.” He says that it “does not provide a means of compliance and does not allow liquidating cryptocurrencies as currencies, since the Central Bank does not consider them to be currencies.”
By Alexander Salazar