Argentina’s Cryptocurrency Regulations in 2024
Cryptocurrency usage in Argentina has experienced a significant surge, with an estimated 1.3 million people currently using crypto in the country. This accounts for 2.94% of the population, showcasing the growing adoption of digital currencies. Since 2019, Argentina has witnessed a continuous rise in crypto acceptance, creating a timeline for the acceptance of Bitcoin and other alternative assets.
One of the reasons for this increased interest in cryptocurrency is Argentina’s strict control over foreign currencies. These controls aim to protect the country from inflation and prevent the transfer of foreign currency outside its borders. As a result, many Argentinians have turned to cryptocurrency as an alternative.
However, it’s important to note that cryptocurrency is not considered legal currency in Argentina. This is because they are not issued by a government monetary authority and are not recognized as legal tender. Only the Central Bank of Argentina has the authority to issue legal currency in the country.
Despite this, Argentina has emerged as a regional leader in the field of cryptocurrency. Argentinians have shown a strong interest in virtual currencies, with more than one out of ten individuals in the country having some form of crypto investment. Additionally, 18% of Argentinians are interested in purchasing cryptocurrency in the future.
In terms of regulations, Argentina has taken steps to institutionalize and regulate the crypto industry. The National Securities Commission (CNV) has launched an innovation hub to facilitate the arrival of new fintech and crypto-based investment instruments to the market. The CNV, along with the Argentina Central Bank, has also issued a joint statement warning about the risks and implications of using and investing in crypto assets.
When it comes to taxation, the income derived from the holdings or disposal of virtual currency is subject to taxation in Argentina. The applicable tax rates vary depending on whether the issuer is located within or outside Argentina. Resident individuals can expect a tax rate of 15% on gains from the disposal of digital currency, while resident legal entities can face tax rates ranging from 25% to 30%.
Crypto mining is permitted in Argentina, and there are currently no specific rules or regulations governing this activity. One town in Argentina, Serodino, has even begun using crypto mining as a means to generate income for infrastructure upgrades. The minted cryptocurrencies are converted into the country’s fiat currency to fund these renovations.
In conclusion, Argentina’s economic downturn, high inflation, and currency deflation have contributed to the growing popularity of cryptocurrency in the country. Many Argentinians have turned to digital currencies as a way to protect their assets and navigate the challenging economic climate. With an increasing number of individuals investing in cryptocurrencies like Bitcoin, Tether, Ethereum, and Dai, Argentina has established itself as a key player in the crypto market.