Argentina introduces 0.6% tax on cryptocurrency exchanges

The state from South America will levy a tax of 0.6% on trading platforms for transactions with cryptocurrencies.

The state publication “Argentina Herald” under Argentine President Alberto Fernandez reported on Wednesday that
introduced 0.6% tax for cryptocurrency exchange operators for trading digital assets.

Previously, only companies that used certain banking operations in the country were taxed at a rate of 0.6% in Argentina. Cryptocurrency trading platforms did not pay taxes as they were part of an exemption that extended to fintech companies registered as payment service providers (PSP).

Secretary of the Federal Tax Service of Argentina Roberto Arias
reported on Twitter that this measure is not a tax on cryptocurrencies and added that the decree “will provide more confidence” in the operation of cryptocurrency exchanges.

The cryptocurrency business does not share his enthusiasm. The executive director of one of the Argentine exchanges in an interview with CoinDesk said that the tax will affect cryptocurrency exchanges that have accounts in Argentine banks. He added that the prices of cryptocurrencies in Argentine pesos are likely to rise as operators add tax to the value of cryptocurrencies.

Argentine entrepreneur and founder of Cafecito Damian Catanzaro, who uses the Lightning Network, suggested that after the introduction of taxes, most users of cryptocurrency exchanges will switch to decentralized platforms and non-custodial wallets.

Argentina is trying, like most other countries, to tax the crypto industry. The province of Tucuman, as before the province of Cordoba, obliged its citizens to pay income tax on cryptocurrencies.