Argentina carries out crypto wallet seizures linked to tax delinquents

Argentina carries out crypto wallet seizures linked to tax delinquents

Argentina’s tax authorities have seized over 1,000 cryptocurrency wallets that were linked to delinquent taxpayers.

According to iProUP local media outlet, 1,269 cryptocurrency wallets belonging citizens who owe Argentine’s Federal Administration of Public Incomes (AFIP) were seized by judicial authorities across Argentina.

AFIP announced its intention to pursue cryptocurrency wallets belonging tax delinquents. In May, it ordered cryptocurrency exchanges to provide monthly reports to users on their platforms.

The crypto services were asked to verify clients’ identities and maintain records of user accounts, income, expenses, and monthly balances.

These firms provided this information to the tax authority. AFIP was able to enforce embargoes against the holdings of wallets that were linked to errant taxpayers during the past few months.

AFIP’s current operating procedure targets liquid assets and bank accounts to recoup debts. If a taxpayer is unable to settle their debts or is not bankable, the AFIP may seize any assets that the taxpayer has.

After two of Argentina’s largest financial institutions stopped offering crypto, Argentina’s crypto plans were put on hold. https://t.co/3VXpoZ0pSk
— Cointelegraph (@Cointelegraph) May 6, 2022

The COVID-19 pandemic provided some relief for Argentinians caught in the crosshairs by the AFIP. A 19-month moratorium was placed on asset seizures to ease financial pressures.

Related: Argentines switch to Bitcoin amid inflation fears: Report

This is because Argentinians are continuing to adopt cryptocurrency to fight rising inflation, a declining peso, and other economic problems. According to Reuters, the increase in cryptocurrency adoption in Argentina has outpaced other South American countries. This is due to citizens seeking a safe haven from rising inflation.

The tax authorities of Argentina are focusing on digital assets and non-compliant tax payers. However, the central bank and the government of Argentina have disagreed over how cryptocurrencies should be treated.

President Alberto Fernandez highlighted the potential of cryptocurrencies to combat inflation in August 2021. Miguel Pesce, Argentina’s central bank president, hinted at future regulation of the sector and its interconnection with the traditional financial system.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Amy Jimenez

Amy Jimenez– Services My name is Amy Jimenez, and I am the main writer behind the" allthetopnews.com" for the ground-breaking and most fragile bits of knowledge into the most recent news in the services sector. I began my voyage of work as an autonomous investment advisor. I had around 4 years of involvement in this field. I am a free soul so; my energy for investigating the world has taken me to the countries over the globe and allowed me to report for a part of the best news affiliations. At present, I am a full-time manager as experienced in the account and began to utilize my capacities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami