The initiative of Buenos Aires Cripto is a package of measures to integrate cryptocurrencies into the municipal services of Buenos Aires, the city authorities said.

One of the key aspects of Buenos Aires Cripto was the updating of the nomenclature of economic activities, where categories were added for operations with crypto assets such as mining, storage and exchange. This, according to the Buenos Aires authorities, should simplify the formation of tax returns for companies and individuals, as well as ensure greater transparency of operations without additional fiscal costs.

In addition, virtual assets service providers (PSAV) that provide their services in the city are exempted from banking regimes of the income tax of Ingresos Brutos, which reduces the bureaucracy and retains working capital for business.

To trade cryptocurrency, a differentiated tax base is introduced, when instead of a traditional tax on a total amount of crypto operations, it will be charged only from net profit. For example, if bitcoin was bought for 100 pesos and sold for 103 pesos, then the tax will be charged only from 3 pesos. This equates crypto assets with other tools acting as a means of payment or savings, such as fiat currencies or gold.

The city administration noted that digital assets holders will be able to pay in cryptocurrency not only basic taxes, but also other services, such as the issuance of a driver’s license or paying fines for violations of traffic rules.

Earlier, the New York District Court decided on unlocking the assets of the creator of the Argentine Libra Cryptoproject Hayden Davis in the amount of about $ 4.7 million.