For years, Argentina has been living with an “exchange trap”, consisting of a set of rules that prevent the normal use and access of people and companies to the exchange market.
And although President Javier Milei has promised that this trap will be eliminated in 2025, the date has not been defined; Some even venture that it will not be until after the legislative elections in the second semester.
Export of services and currency settlement
As part of these exchange restrictions, there is an obligation for those subjects that export goods and/or services which is to settle foreign currencies. What does this mean? If a person, for example, carries out some work abroad from Argentina, he or she is obliged to enter the country, via a local bank, the dollars or euros collected, which will be converted to Argentine pesos (“liquidated”) according to the exchange rate. official (which is lower than the real or “parallel” exchange rate).
For the year 2025, there is a franchise below which there is no obligation to liquidate foreign currency and foreign currency can be deposited into the bank without converting it to pesos: US$36 thousand annually.
In this sense, what happens to a freelancer who works abroad and gets paid in bitcoin or any cryptocurrency? How do you “liquidate” currencies? Aware that there is no official “solution” to charging in crypto assets and having to enter dollars into the system, the NGO Bitcoin Argentina has proposed in the last days that the Central Bank accepts the possibility of settle the crypto assets received in local banks or Virtual Asset Service Providers (PSAV) for exports of services, as long as they are above the franchise of US$36 thousand annually.
This reform proposal would be, in the words of the NGO, a “temporary” solution, since it does not consider that forcing the exchange of bitcoins for fiat currency is valid nor that it is convenient for economic development, but it stands out as a way to expand the freedom and rights of residents and financial entities to operate with bitcoin and other crypto assets. In addition, it would be possible to “expand formal economic activity that today takes place through informal means.”
A more drastic measure that would further promote the possession of crypto assets by taxpayers would be the non-obligation of liquidating currencies in the event of collecting in bitcoin and cryptocurrencies, regardless of the amount. In this way, as happens in most countries, if a company were paid in bitcoin for an export of services, it could keep those bitcoins in its Treasury, without the need to compulsively exchange them for Argentine pesos.
Banks and Payment Service Providers
Along the same lines of ideas, in order to promote the adoption and use of bitcoin and cryptoassets in general in Argentina, it would be advisable to eliminate certain restrictions that weigh on banks and “virtual wallets” (PSP or Security Service Providers). Pay).
From 2022, The Argentine Central Bank prohibits financial entities from carrying out and providing their clients with operations with “digital assets, including crypto assets.” This restriction, approved in May 2022, arose after Banco Galicia offered, through its home banking, the cryptocurrency purchase service; service that, due to regulations, only lasted a couple of days.
Then, in the year 2023through another regulation of the Central Bank, it was impossible for the PSPs to offer the same service.
Lifting these restrictions could favor the adoption of bitcoin and cryptocurrencies in the country, making it easy for any person and company to access quickly and easily to the acquisition of these assets.
Corporate contributions in crypto assets
A good measure aimed at increasing the use of cryptoassets was taken by the General Inspection of Justice of the City of Buenos Aires in July 2024: the body in charge of the registration and supervision of companies in Buenos Aires allowed cryptoassets to be contributed both in the constitution of companies and when increasing their share capital.
One of the requirements is that the “virtual assets” be deposited in a Virtual Asset Service Provider (PSAV) registered with the National Securities Commission (CNV).
Although this measure facilitates corporate contributions in cryptoassets, increasing their possibilities of use, it was only taken within the City of Buenos Aires. It would be ideal for it to be replicated in the rest of the country, allowing any company to have the possibility of receiving cryptoassets as a corporate contribution.
Acceptance of crypto assets by the State
Another factor that may contribute to the adoption of bitcoin and cryptocurrencies as a form of payment is the fact that the State itself accepts this means of payment. An example is the collection agency of the province of Mendoza, which since 2022 allows taxes to be paid using cryptocurrencies. This fact also constitutes an official “endorsement” for these assets.
It is important to note that the Treasury does not receive cryptocurrencies directly, but rather an intermediary company processes the payment in cryptocurrencies and then delivers pesos to the Treasury.
The rest of the Argentine provinces still do not have this possibility.
Tax proposals
And could the tax regime for companies be an ally of the adoption of bitcoin and the rest of the crypto assets? Clearly, the answer is yes.
One of the measures that could be taken to favor the holding of crypto assets by companies is the way in which these assets are valued: in the tax balance the purchase cost (and not of listing) should be computed and the gain recognized only at the time of sale (and not by mere possession, as happens today). This measure, which seeks to prevent the volatility of the price of crypto assets from triggering tax obligations, has also been proposed by the Argentine Fintech Chamber a few months ago.
Likewise, for greater clarity when preparing sworn statements before the Treasury, you should have a classifier or nomenclator of activities that specifically includes activities with cryptoassets (e.g. mining, trading, etc.).
In this sense, a quite particular event took place at the beginning of December: as we commented on that occasion, the Customs Collection and Control Agency (ARCA) incorporated several activities linked to cryptoassets into the “Classifier of Economic Activities” (for example , “Crypto asset custody services”).
However, a few days later, the rule was repealed and the head of ARCA was removed from her position: the “official” reason was that the Government did not want to increase the tax burden. However, this explanation does not make much sense: the fact that these activities have been incorporated into the Activity Classifier does not imply a change with respect to the taxes that could be paid for possessing and/or operating cryptoassets. Taxes are approved and modified by laws of Congress, not by measures taken by the Revenue Agency.
For example, if a company carried out the activity of bitcoin mining, for said activity it was already and continues to be subject to taxes, regardless of the “nomenclator of activities” under which it was registered. That is, instead of registering, for example, in the code “Cryptographic validation service…” (already repealed), it should be registered in another similar one, such as “Data processing”; but here I would not be certain if said inscription is correct. That is why it becomes necessary nomenclator that specifically includes the main operations with cryptoassetsto bring greater clarity to the industry.
In another order of ideas, a tax reform that eliminates or modifies distorting taxes that fall on the usual activities of the different actors in the sector could also collaborate with the development of the industry: from the tax on credits and debits in bank accounts, to the gross receipts tax at the subnational level.
In this regard, President Milei promised to eliminate 90% of taxes during his term: will he deliver?
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
