We can't blame the government. The major focus of any country is to generate money from its people. How is this possible, levy tax over the people. Atleast Argentinian government is making plans for the taxation. However this can't be made immediately, so the focus is good with short term changes. Already India have put 30% tax which is very big and limit people from using it.
Exactly, Argentina is also a tax dependent and they can't survive without this especially the economic situation that they are into right now. They still need to create a law for this one, this is not easy to execute but expect that they are slowly getting there and taxing your profit in crypto is really possible. Argentinian should look for alternatives, most probably there's still a way for them not to pay huge taxes, they just need to understand the new law. 
Topic: Argentinian Government Ready to Take Advantage of Crypto Holder - page 2. (Read 314 times)
We can't blame the government. The major focus of any country is to generate money from its people. How is this possible, levy tax over the people. Atleast Argentinian government is making plans for the taxation. However this can't be made immediately, so the focus is good with short term changes. Already India have put 30% tax which is very big and limit people from using it.
I am wondering how it would be a success? How they could trace which addresses have been used by which users? It's not possible in a decentralized ecosystem. Only centralized exchange or wallet would be traced and ask for taxes. Anyway could use non-custodial wallets to handle their crypto assets. During sale even they could do it in the black market in case government overcharge the tax.
Most probably a way to intimidate those holders in a decentralized platform so they can declare their income and pay the necessary tax. Argentina is doing their best effort to collect more taxes, this is one of their plan and it looks like crypto user there should follow this especially if you’re already on a CEX platform. I am wondering how it would be a success? How they could trace which addresses have been used by which users? It's not possible in a decentralized ecosystem. Only centralized exchange or wallet would be traced and ask for taxes. Anyway could use non-custodial wallets to handle their crypto assets. During sale even they could do it in the black market in case government overcharge the tax.
Most probably a way to intimidate those holders in a decentralized platform so they can declare their income and pay the necessary tax. Argentina is doing their best effort to collect more taxes, this is one of their plan and it looks like crypto user there should follow this especially if you’re already on a CEX platform. 
I am wondering how it would be a success? How they could trace which addresses have been used by which users? It's not possible in a decentralized ecosystem. Only centralized exchange or wallet would be traced and ask for taxes. Anyway could use non-custodial wallets to handle their crypto assets. During sale even they could do it in the black market in case government overcharge the tax.
Collection of data maybe means that they are tracking how big the number of crypto users and to know what law they can implement towards this. I also believe that many other country contributes to the decision on the country who want to regulate crypto and if they see how huge the user base of this technology for sure they will find ways to implement a taxation and they will provably start by getting the information on legal platform which is registered on their country. Hopefully the tax they ask to get is not so huge and fair to each crypto user out there.
If the userbase is huge, that means even a slight tax would make them a lot of money and they could help either their pockets (like all politicians always do) or use some of it for the betterment of the nation (maybe a small sum).So, this would unearth the fact that they could make profit and each nation should consider making it legal and allowed so that they could tax it. My nation didn't make it legal tender yet, probably won't, but they have seen it as a legal thing and allowed exchanges to flourish, we have plenty now who all spend millions on marketing but the end result is that we are talking about huge taxes paid and nation grows bigger with it (or politicians grow richer).
So I don't see a problem with a government going in that direction, and anyone who buys and sells crypto legally pays taxes anyway
Same here, I don't see any problem if the government implements a tax on cryptocurrency transactions. It is the duty of every citizen to pay taxes. Aside from that, I can see positive vibes from this kind of regulation. If the government imposes a tax on cryptocurrency they automatically legalize and adopt cryptocurrency, thus, I can see a massive adoption coming if countries follow the example. but the question is how well the government will protect that data, because it would be very inconvenient for someone to hack it and make it public.
Indeed this is also one of the major concerns of developing countries that do not prioritize DATA security. For example, voter information was leaked during the 2016 Philippines election.[1]
Well, there are two things wrong with your post...
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I think it is the Argentinian Government's Tax Agency approach you are referring to
.[1] https://www.bbc.com/news/technology-36013713
How they're going to know that a citizen is a holder? Unless that citizen declares and tells that he's a holder then they should know. But otherwise, the government will never know that someone is a holder unless being declared and proclaimed.
Well, this is where things are going for the governments to take advantage of the people that are into crypto, they should also regulate the local exchanges.
I think it is enough to regulate exchangers that withdraw crypto to fiat. It is enough to get information once on which wallet was credited from his bank card through the exchanger and that's it, then follow his operations and the balance of his wallet. Well, this is where things are going for the governments to take advantage of the people that are into crypto, they should also regulate the local exchanges.
Well, there are two things wrong with your post...
1. Tax evasion is not the main aim for most people, when they use Crypto currencies. A lot of them just want to have faster and cheaper transactions ...and some financial privacy. (They do not want some government official snooping on their financial transactions)
2. Having a central database of all "Bitcoin holders" in their country, will not solve their tax evasion problems. There will still be a lot of people (criminals) that will use direct payments not registered on this centralized database to evade taxes.
That’s right, a lot of people always think negatively when cryptocurrency is mentioned. But, that is not the truth about this, a lot of people have different reasons and of course there are good reasons why they are making use of cryptocurrency. Not everyone who is making use of cryptocurrency has a bad intention.1. Tax evasion is not the main aim for most people, when they use Crypto currencies. A lot of them just want to have faster and cheaper transactions ...and some financial privacy. (They do not want some government official snooping on their financial transactions)
2. Having a central database of all "Bitcoin holders" in their country, will not solve their tax evasion problems. There will still be a lot of people (criminals) that will use direct payments not registered on this centralized database to evade taxes.
When I started making use of crypto currency it was just for me to be able to receive payments from companies that I work for who were abroad. And it made things a lot easier for us as payment was made the same day and also received same day, instead of having to make use of banks that would take days before the payment arrives.
And other payment methods weren’t even an option in my country then, so not everyone who decided to use Bitcoin had any bad intention for doing so. And some of us who are making use of it are for investment as well.
It would be illogical for governments not to think about such things, it is in their interest to try to collect as many taxes as possible, but even more to control the flow of money. All this, of course, in order to prevent money laundering, terrorist financing, and various crimes, but in many countries also due to anonymous donations to various anti-government organizations that fight against bribery, corruption, and nepotism.
Given that most crypto transactions have their source in centralized crypto exchanges where clients have already made KYC, it is not difficult to come up with data that would create some kind of common database. After all, most countries in the world exchange data on the bank accounts of their citizens, and it was difficult for any ordinary person to hide anything from the authorities.
So I don't see a problem with a government going in that direction, and anyone who buys and sells crypto legally pays taxes anyway - but the question is how well the government will protect that data, because it would be very inconvenient for someone to hack it and make it public.
Given that most crypto transactions have their source in centralized crypto exchanges where clients have already made KYC, it is not difficult to come up with data that would create some kind of common database. After all, most countries in the world exchange data on the bank accounts of their citizens, and it was difficult for any ordinary person to hide anything from the authorities.
So I don't see a problem with a government going in that direction, and anyone who buys and sells crypto legally pays taxes anyway - but the question is how well the government will protect that data, because it would be very inconvenient for someone to hack it and make it public.
As expected, The government will do the best they can to milk money from crypto holders. This is the first time I read about the government creating a centralized record of the registry of the crypto holders in order to get tax on whatever profit the crypto holder has. It looks like this is the start of the crypto tax collection exploit of the government. I am sure after this one becomes successful, many countries will follow this example. So we better expect that in the near future our very own country will do such a thing. Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell.
I was expecting to see that one coming not just about Argentinia but about many other countries, tax is usually the first income resource for the governments and since people, many in the world are using bitcoin and cryptocurrencies the trading value of fiat will decrease so the tax they get from people will decrease, because of that, I was always waiting to see the governments start taking tax from the bitcoin holders and the traders, but I think if people start using the private wallets and do p2p exchanges they can have a chance to stay away from the governments.
Argentina is experiencing a hyperinflation, too much money around will surely cost them a lot and maybe they are just trying to control it and help their economy to survive by raising more funds thru their taxation. The government can really impose this kind of law that requires people to pay their taxes, just like in other countries where it is already required. For me this is way better than to ban Bitcoin, people have to deal with the regulations, its inevitable.
Well, big exchanges like Binance or Coinbase already cooperate with governments all around the world, so in some way they are registers of crypto holders, because they have KYC. I'm not sure how feasible it is to create a global register, governments would be wary of unlimited sharing of data about their citizens with each other, as that could cause trouble for them. Also using foreign banks to avoid taxes is not exclusive to crypto, so existing regulations should take care of it.
Hopefully the tax they ask to get is not so huge and fair to each crypto user out there.
I believe is going to be a considering percentage for a start to encourage the people not to kick against it and to support it but I also believe it will be increased with time because government can not survive without generating money. If they push the percentage high it will be resistant to that policy which delay will come into it.
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It is not surprising that the government wants to take crypto taxes from their owners because the government sees cryptos as being able to provide a large income for the country. I think sooner or later, every government will apply a tax on crypto owners and the amount will depend on the policies of each government. After all, the government will have a way to collect taxes from crypto users and we must be really wise in using crypto so that the taxes we pay are appropriate.
I think collection of data of cryptocurrency users in Argentina means the government want to have a regulation to either collect tax and to know the rate of adoption in the country. I think it will be better if there is sincerity of regulation and not to ban the people account. Linking of accounts with KYC isn't decentralised.
Collection of data maybe means that they are tracking how big the number of crypto users and to know what law they can implement towards this. I also believe that many other country contributes to the decision on the country who want to regulate crypto and if they see how huge the user base of this technology for sure they will find ways to implement a taxation and they will provably start by getting the information on legal platform which is registered on their country. Hopefully the tax they ask to get is not so huge and fair to each crypto user out there.
I think collection of data of cryptocurrency users in Argentina means the government want to have a regulation to either collect tax and to know the rate of adoption in the country. I think it will be better if there is sincerity of regulation and not to ban the people account. Linking of accounts with KYC isn't decentralised.
I'm not sure what to think of this initiative. It says that it'll create a crypto holder registry (so, everyone who has cryptos is supposed to be on it?) to ensure taxes are being paid. Are there registries for those holding stocks, commodities, securities? Are there registries for people who hold their money in, say, foreign fiat, and then sell sometimes when the price is right (and with a huge inflation in Argentina, this can lead to significant profits)?
I think that treatment must be equal, and if it's more harsh for crypto holders than for everyone else, it's not fair.
I think that treatment must be equal, and if it's more harsh for crypto holders than for everyone else, it's not fair.
Well, there are two things wrong with your post...
1. Tax evasion is not the main aim for most people, when they use Crypto currencies. A lot of them just want to have faster and cheaper transactions ...and some financial privacy. (They do not want some government official snooping on their financial transactions)
2. Having a central database of all "Bitcoin holders" in their country, will not solve their tax evasion problems. There will still be a lot of people (criminals) that will use direct payments not registered on this centralized database to evade taxes.
1. Tax evasion is not the main aim for most people, when they use Crypto currencies. A lot of them just want to have faster and cheaper transactions ...and some financial privacy. (They do not want some government official snooping on their financial transactions)
2. Having a central database of all "Bitcoin holders" in their country, will not solve their tax evasion problems. There will still be a lot of people (criminals) that will use direct payments not registered on this centralized database to evade taxes.
Nothing new as what other countries are doing right now. These days all of them copying each other. The taxation report is also compulsory in India. Finance minister Sitaraman did the same when they revised the bill for India-22-23 goals. The tax is not 2,5,10% but its whopping 30% on every crypto transaction which includes buying or selling of the assets in the crypto forms.
It is simply based on the bank records. When you buy and sell the crypto then your local exchanger will have to decalre the asset holdings with your KYC. Plus whenever you will be withdrawing the amount into your bank account or sending money to crypto exchanger, that's gonna be on record as crypto profits. So there you go, they know it.
How they're going to know that a citizen is a holder? Unless that citizen declares and tells that he's a holder then they should know. But otherwise, the government will never know that someone is a holder unless being declared and proclaimed.
Well, this is where things are going for the governments to take advantage of the people that are into crypto, they should also regulate the local exchanges.
Well, this is where things are going for the governments to take advantage of the people that are into crypto, they should also regulate the local exchanges.
It is simply based on the bank records. When you buy and sell the crypto then your local exchanger will have to decalre the asset holdings with your KYC. Plus whenever you will be withdrawing the amount into your bank account or sending money to crypto exchanger, that's gonna be on record as crypto profits. So there you go, they know it.
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