Topic: Argentinian Government Ready to Take Advantage of Crypto Holder - page 3. (Read 367 times)
no wonder that the government is trying their best to track down crypto owners and collect taxes from them... they try to regulate crypto circulation in their country as much as possible on the grounds that this is to protect crypto users in the country.. smh
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.
Argentinian Tax Agency Supports Creation of Global Crypto Report System to Avoid Evasion
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.
Quote
The AFIP, the Argentinian tax agency, is supporting the creation of a centralized system that serves as a registry for cryptocurrency holders. According to statements from its head, this would make it easier for tax agencies all over the world to curb evasion. The organization has already made use of financial information to collect taxes from Argentinian users with bank accounts abroad.
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.
It's always interesting to see how different governments react to cryptocurrency and it does feel like Argentina are overstepping the mark a bit. If you bought cryptocurrency with money that is already fairly taxed and there is the assumption that you will properly declare any future earnings from it, that should be enough. However their current stance feels like huge overreach and could backfire by driving reporting further underground. While the notion probably sounds good and noble on paper, it's not going to work well in this form.
Well, if we really try to understand it, taxes after all are in no doubt just and vital responsibility of any country citizen. No one should really be exempted from this since it helps the country itself with a lot of things regardless of the corrupt government. What's wrong though is if governments impose unreasonable tax to use crypto enthusiasts which I wish they never do. Otherwise, goodbye custodial wallets and welcome back non custodial wallets. I really don't mind a few hassles if it protects me and my hard earned assets from unreasonable taxes and worse case freezing or total confiscation.
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You can still hide your crypto funds from them if you really wanted to but don't expect you can hide forever when you've been using centralized exchanges and custodial wallets in the past.
Yes, my first thought is that those who have their private keys will be able to escape this system, but it will depend a lot on what they have done in the past.
Knowing what the Argentinian government has done in the past, things like this don't surprise me, they see money leaking out of people holding bitcoin, and they want to control it.
For anyone who doesn't know a bit of Argentina's economic history:
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Corralito (Spanish pronunciation: [koraˈlito]) was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run which implicated a limit of cash withdrawals of 250 ARS per week (at that time 1 USD = 1 ARS).
https://en.wikipedia.org/wiki/Corralito
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Argentina's currency board established a fixed pegging of one-to-one parity between the peso and the U.S. dollar. It also guaranteed full convertibility of pesos into U.S. dollars.
In January 2002, the new president Eduardo Duhalde ordered his finance minister Jorge Remes Lenicov to repeal the Convertibility Law and adopt a new, provisional fixed exchange rate of 1.4 pesos to the dollar (a 29% devaluation) and the conversion of all the bank accounts denominated in dollars into pesos and its transformation in bonds ("Corralon"); soon afterward it completely abandoned its peg and allowed the peso to float freely, resulting in a swift depreciation of the peso, which lost 75% of its value with respect to the U.S. dollar in a matter of months, stabilizing at a rate of 2.9 pesos per dollar by 2003.
In January 2002, the new president Eduardo Duhalde ordered his finance minister Jorge Remes Lenicov to repeal the Convertibility Law and adopt a new, provisional fixed exchange rate of 1.4 pesos to the dollar (a 29% devaluation) and the conversion of all the bank accounts denominated in dollars into pesos and its transformation in bonds ("Corralon"); soon afterward it completely abandoned its peg and allowed the peso to float freely, resulting in a swift depreciation of the peso, which lost 75% of its value with respect to the U.S. dollar in a matter of months, stabilizing at a rate of 2.9 pesos per dollar by 2003.
https://en.wikipedia.org/wiki/Convertibility_plan
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.
it has been predicted by many people that when crypto adoption becomes more widespread, we will see many countries trying to take advantage of bitcoin and crypto, whether it is by legalizing bitcoin or by imposing taxes on all bitcoin holders. Currently, the government of my country has not imposed a tax on bitcoin holders here, there is a possibility that they will follow Argentina's footsteps. 
With technology anything is possible. So, creating the centralized directory on the people using/holding cryptocurrency is possible. However this isn't going to be perfect. There'll be loop holes and people make use of it. The major focus is to overcome the tax evasion creating a universal directory that can be used by the tax agencies all around the world. In my view, the data collections on the users will be made connecting to the bank accounts. So, then onwards people show interest in direct usage.
they may not get the whole picture of the crypto holdings of their people, but at least they will be getting something from this market. unlike those countries who are totally banning the crypto market. we all know that crypto users can hide some of their transactions and you can just disclose your other txs if you will use centralised platforms. their government may be realising that they can get a hold of some of their crypto users but definitely, they know, they won't get the entire crypto market of their people.
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.
millions of dollars which they wouldnt really like for them to miss out on what taxes that they could really get but the question is, on how they would really be doing such
tracking or on how they would really extract those users? How they would know? Through CEX? I think this wont really be that much to be effective.
... . 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.
I guess it's the first country to make a public statement about this. I'm pretty sure countries that already had taxation laws on crypto gains or losses is maintaining a list of their own. Quote
Cryptocurrency blockchain may be decentralized but the government seems to have its way of breaking its shell.
You can still hide your crypto funds from them if you really wanted to but don't expect you can hide forever when you've been using centralized exchanges and custodial wallets in the past.Some blockchains are not that decentralized by the way.
Argentinian Tax Agency Supports Creation of Global Crypto Report System to Avoid Evasion
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.
Quote
The AFIP, the Argentinian tax agency, is supporting the creation of a centralized system that serves as a registry for cryptocurrency holders. According to statements from its head, this would make it easier for tax agencies all over the world to curb evasion. The organization has already made use of financial information to collect taxes from Argentinian users with bank accounts abroad.
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.
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