Every time we move money from bank accounts on an exchange, the bank withholds this tax.
What solution does the Argentine government promise? And why is there such a delay in its implementation?
Among the many distinctive features of Argentina, the complexity of its tax framework stands out: not only are there a wide variety of taxes at the federal and regional level, but many of them are very harmful to economic activity in general (and for this reason, for example, they no longer exist in other places in the world).
The two main examples are the Tax on Gross Income and the Tax on credits and debits (known as the “check tax”).
In the case of Gross Income, it is a tax that affects people and companies that carry out economic activity in any of the 24 Argentine provinces and taxes the entire amount invoiced, without the possibility of deducting any type of expense: Therein lies one of the main defects of this tax. However, for the activity of buying and selling cryptocurrencies, several Argentine provinces have introduced improvements to the rule, allowing the deduction of costs (as we analyzed in a previous column).
But the tax that today takes all the blame in the cryptoasset industry in Argentina is, without a doubt, the tax on credits and debits: it is a tax that has existed for more than two decades and that is applied to every movement in a bank account (both in the deposit and withdrawal of funds). And although many actors in the financial system are exempt from this tax, Virtual Asset Service Providers (PSAV) are not, following a rule from 2021.
Decree 796 of 2021 introduced changes to the tax regulations and limited the benefits: since then, the exemptions and reduced rates do not apply in those cases in which the movements of funds are linked to operations (purchase, sale, intermediation, etc.) on “crypto assets, cryptocurrencies, digital currencies or similar instruments.”
In other words, a PSAV is left out of the benefit and suffers the tax every time money is credited and debited in the bank accounts that it uses to carry out its activity (that is, in the accounts that receive funds from clients who wish, for example, to buy bitcoin). And this implies a very high extra cost for the Argentine exchange, a cost that (at least in part) will be passed on to its clients. And this vicious circle could lead to users choosing “cheaper” exchanges that operate abroad.
Reform promises
This limitation on the exemption from the Tax on credits and debits was established under the previous Government in Argentina and, according to many, the justification was to discourage operations with cryptocurrencies in order to also reduce the pressure on the exchange market (since many exchanges resort to purchasing dollars to carry out their operations).
Then, upon assuming the new Administration, with President Javier Milei at the helm, It was promised that “soon” the limitations imposed by Decree 796 would be eliminated.
However, as a result of the “Libra scandal” at the beginning of 2025, and given the media sensitivity of the issue, exacerbated by the Legislative Elections, the promise of modification was diluted.
However, attentive to the endless complaints and requests for reform from the industry and its various actors, including the Fintech Chamber, in recent days the Government has hinted that in the coming weeks it would finally make the necessary changes to the regulations so that PSAVs do not continue to suffer this disastrous tax on banking transactions.
Why is reform necessary?
The tax on credits and debits that falls on exchanges represents an unnecessary brake on an industry that could generate competition, investment and employment in Argentina. In a global market where operating with cryptoassets is increasingly agile and economical, forcing Argentine PSAVs to bear a banking cost that their foreign peers do not face only pushes users out and erodes the possibility of developing a solid ecosystem in the country. At the same time, it does not favor “economic formality”, since foreign exchanges do not report directly to the Argentine Treasury.
That is why the discussion about reversing the restrictions of Decree 796 is not a whim of the industry, but a necessity so that the rules of the game stop punishing innovation. The Government has hinted that it could move forward with the reform, but until it comes to fruition, local projects will continue to compete at a disadvantage. Correcting this nonsense would be a basic step to stop putting obstacles in the way of a sector that has a lot to contribute.
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.