Argentina Can Now Seize Digital Currency Avoiding Tax

Governments around the world have spent big over the last 2 years, spending they could hardly afford but did it anyway. The spending coupled with the shut down of global supply chains is starting to manifest in consumer price inflation even in developed nations. As governments try to plug the hole in their balance sheets they will look to all sorts of tax ideas and financial engineering.

One country that has been pretty famous for mishandling its obligations and defaulting several times is Argentina. Their failure to grow and pay off debts has seen their currency take the brunt of the pain and in turn, leave many citizens poorer.

In previous years, we've seen Argentina outlaw US dollar holdings to force citizens into the local currency so they can continue to debase and extract people's wealth over time.

The introduction of bitcoin

Prior to bitcoin, apart from holding physical gold or physical foreign currency, there was not much you could do to escape the debasement and increased taxes. Once bitcoin came around it provided an escape valve for some of that purchasing power to find a home outside the system and thus curb the government's ability to extract wealth.

If you used bitcoin as it was intended, to buy and hold your wealth in a method where you hold your own keys, you have nothing to worry about, you've created no taxable events and even if you did, there's no way they can take it from you, short of physical force.

The problem is very few use bitcoin as it is intended and even more are creating mountains of taxable events that they think they can get away with because it's new tech. The answer to this is a resounding no, if you're trading on exchanges, if you're not using non-KYC services, if you've tied your identity to an on-chain wallet in any way, you're pretty much exposed to tax obligations.

Tax on digital currencies are coming for you

We're not getting news out of the Argentinian Tax Authority (AFIP) that they will now be able to confiscate the assets that taxpayers have in digital wallets. If a citizen has tax obligations that they have not reported themselves or settled in fiat, these debts can be used as a means to either seize your funds from an exchange or your bank account.

Not only are your funds up for grabs but also other investments such as vehicles, loans to third parties, houses, and cars can be seized to settle your unpaid taxes from your cryptocurrency gains.

I've seen a lot of chatter online from crypto bros thinking they're too smart by a half that they can avoid taxes, but as governments get desperate they will continue to close the loops and funnel you into the abitur for slaughter.

You either hand over your pound of flesh or you rot in a jail cell.

argentinadigitalassettax.png

The Argentinian Tax Authority is not some rink a dink operation and revealed that it has begun data collection based on these regulatory measures and will force financial institutions to give up customer information when required by law.

Apparently, 9,800 taxpayers whose digital accounts have already been flagged for confiscation as Argentina look to aggressively stamp out cryptocurrency tax avoidance.

This newly approved procedure has already struck up deals with 30 digital wallets that handle the national fiat currency in the country, such as Bimo, and Ualá for the automatic seizure of funds.

However, the important target for the Argentinian tax authority is Mercado Pago, the digital wallet of Mercadolibre, a bitcoin-friendly retail unicorn, that allows debtors to store their savings away from tax authorities.

Even if you are using a Non-KYC exchange and you're not using your own node to conduct transfers you're trusing a node of a centralised service provider like your wallet providers node, that data can always be used to trace your funds and since most people don't care too much about privacy, most would have easily left a doxing trail to follow.

1, 2 tax mans coming for you

If your funds are not stored on a centralized service or a custodial wallet then your cryptocurrency will not be the first target when collecting tax debt. First will confiscation of more liquid assets such as cash or physical assets. Only when these funds are not available or not enough to cover debts will the tax authorities pursue other assets.

Sources:

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Safely Store Your CryptoDeposit $100 & Earn $10Earn Interest On Crypto
ledger.jpgBlockfi.jpgcryptocom.jpg

celciusnetwork.jpg

Posted Using LeoFinance Beta



0
0
0.000
28 comments
avatar

Nice post keep it up.
if you haven't receive 100 HIVE and 200 LEO than vote LeoFinance for witness
LeoFinance is a well known and great project so i am vouching for it
Vote Here for LeoFinance and get 100 HIVE and 200 LEO now

0
0
0.000
avatar

why are you sending people phishing links?

0
0
0.000
avatar

Best to downvote scam posts like these, they have a very high rating and people might trust the link based on that. Prob a formerly legit person who had their account hacked or something.

0
0
0.000
avatar

Government institutions worldwide want their pound of flesh, go to lengths to secure taking what they feel belongs to the state. Actually a sad state of affairs but true.

0
0
0.000
avatar

If you're going to use their rails, you have to pay the fair, for me, it just gives you more of an incentive to hodl long term and then move to a country where your bitcoin isn't taxed. Taking profits only ends up being giving your profits to the government, thats why trading seems even more pointless

0
0
0.000
avatar

Totally agree with you, unfortunately of an age where I won't be able to move, too much cost involved. Am looking at ways to make it work for my sons, best bet is to plan ahead and get going....

0
0
0.000
avatar

Yup, that is the play. I think more countries will move to taxing sales of BTC, but no tax when you SPEND it.

0
0
0.000
avatar

Dear @chekohler , Nice meet to you!
I agree with your argument that governments will impose heavy taxes on cryptocurrencies in the future!
I'm not sure if those who are overconfident that they can avoid government taxation will be able to avoid the government's relentless pursuit.

In Conclusion, Do you think there is any way to avoid government heavy taxation on cryptocurrency?

0
0
0.000
avatar

The only way to avoid taxation, would be to cold storage our bitcoin and never sell it

0
0
0.000
avatar

The only way to avoid taxation, would be to cold storage our bitcoin and never sell it

Dear @chekohler, Are you white living in The repurblic of South Africa?
I am an East Asian man.
My english is not good! So, I hope you understand my awkward English.
If we don't buy and sell bitcoin as you argue, what profit can we make?😅

0
0
0.000
avatar

Lol no I'm not white I am coloured, but what has that got to do with anything? You don't need to take profits, when you can borrow against your bitcoin

0
0
0.000
avatar

Lol no I'm not white I am coloured, but what has that got to do with anything? You don't need to take profits, when you can borrow against your bitcoin

I am sorry for my mistake! I looked like a white person in your appearance.
So do you mean that individuals store bitcoin and sell it when the price soars?
Others are looking to make a profit by buying and selling Bitcoin.

0
0
0.000
avatar

Well you can do that and then pay the taxes on that, but the more tax efficient method is to lock up your bitcoin with a service provider like NYDIG, HODLHODL or LEDN and get a loan against your bitcoin.

You can get fiat currency and avoid the tax, you just obviously need to pay the loan back, but if you do it right you'll get far more out of it than selling your bitcoin

0
0
0.000
avatar

Well you can do that and then pay the taxes on that, but the more tax efficient method is to lock up your bitcoin with a service provider like NYDIG, HODLHODL or LEDN and get a loan against your bitcoin.

You can get fiat currency and avoid the tax, you just obviously need to pay the loan back, but if you do it right you'll get far more out of it than selling your bitcoin

Wow, @chekohler , That is good idea! If you write articles about those methods later, they will be very popular!

0
0
0.000
avatar

I have to agree that having your wallets linked together on an exchange fixes you as a target. However I know that some people want to live off their crypto earnings and in that case, what do you suggest they do? After all, fiat is still used for the most part in society and I doubt you can get a card without going KYC either.

Posted Using LeoFinance Beta

0
0
0.000
avatar

If you have non-kyc sats, you should use a P2P exchange if you need to get cash. If you're not keen on doing that, then hand over your funds to the government if you choose convenience you got to pay the premium

0
0
0.000
avatar

Yup P2P for cash works just fine, and in fact, depending where you are, you might even be able to get a really nice premium when you sell due to high demand and the fact that not many people are willing to sell for cash (for some crazy reason I do not understand).

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
avatar

That’s crazy but not unexpected! I think @lauramica lives in Argentina, you better be careful my friend!

Posted Using LeoFinance Beta

0
0
0.000
avatar

They're coming for your sats, as bitcoiners become wealthier you're going to look like a great big pinata for governments, and trust me they're not coming blindfolded and they going to bash the shit out of us

0
0
0.000
avatar

Argentina hates rich people and loves high taxes. It is a terrible place to live with awful inflation, and the country is bankrupt, so it is only going to get worse. Anyone that lives there should escape as soon as they can.

0
0
0.000
avatar

Argentina hates the rich, they even introduced a "temporary" wealth tax", one of the worst in the world!

Just stay stay away, dont even go there on vacation, I dont want to support an economy like that with even a single dollar.

0
0
0.000
avatar

Government will do everything to get every single penny from your wallet. Indian government also announced that they are going to tax 30% in crypto. Its even higher than the normal tax bracket.
My question to them is - Are they going to compensate any loses too?

0
0
0.000
avatar

Not a compensation, but if you are a trader, you can sell at a loss to capture that tax loss as an asset to offset gains somewhere else. But really only professional traders are doing that, and normies won't really have the capital to fully exploit those loop holes

0
0
0.000
avatar

Most people are lazy and wont bother to protect themselves in any way, even though it is actually very easy once you have done your research. Most people dont even know what a VPN is, for example, and probably only like 2-5% of people use encryption on their personal computers. It would almost be funny that people think buying some BTC makes them invisible if it werent downright sad how ignorant folks are. 99% of crypto investors will just link their bank account with their real name and passport, yet think they can magically avoid taxes now, not realizing it is trivially easy to see what they are doing.

If people didnt bother to use the massive selection of privacy tools to protect themselves out of laziness, that is their own fault, and they will pay the price with this new law when they dont put down the crypto profits on their tax returns.

Always keep your coins in a wallet you control, use encryption and VPNs, and get them from a no-KYC source like P2P offline deals with cash. Keeping part of your money in privacy coins is even better, as a way to hedge your risk in case of government tyranny in the future.

0
0
0.000
avatar

WARNING - The message you received from @animal-shelter is a CONFIRMED SCAM!

DO NOT FOLLOW any instruction and DO NOT CLICK on any link in the comment!

0
0
0.000