Argentina has managed to stand out in Latin America when it comes to crypto. Its neutral (sometimes ambiguous) posture has created a healthy crypto ecosystem used as an example in the region and also the rest of the world. One could say that legally, its position has not only been permissive, but even favorable.

Local regulation and taxes

Of course cryptocurrencies are not considered legal tender in Argentina, strictly speaking, because they’re not issued by the Central Bank (Legal tender is a means of payment recognized by a jurisdiction or a country to be valid for meeting a financial obligation). But because they’re not explicitly prohibited, they’re also not illegal. In theory, the Estate cannot interfere in a transaction between two parties that agree on the cost or price of something — except when it’s related to money laundering, terrorism, etc.

Bottom line is, there is still no specific regulation regarding cryptocurrencies in Argentina.

There are initiatives to create a regulatory framework coming from official entities, but nothing conclusive yet. There were many expectations during the G20 meeting held in Buenos Aires in 2018, but even then, there was no definitive action.

Regarding taxation, the Government made a strange move in January 2018: Transactions involving digital currencies “inside” Argentina and “issued” in pesos would have to be declared and taxed (in most cases 15%). However, digital currencies are not issued in any fiat currency and do not belong to any geographical territory but the Blockchain. Cryptocurrencies cannot be located in Argentina.

So in reality this tax is almost inapplicable, and remains grey territory.

Adoption in Argentina

Although we’re far from talking of ‘wide adoption’; it’s still true that cryptocurrency use in Argentina is a lot more normalized than its neighboring countries, and the trend is on the rise with more Exchanges, bitcoin ATMs, wallets, blockchain startups, NGOs and numerous events. This may come as a result of the economic instability of the country, the high inflation and currency restrictions that’s pushing Argentines to look for suitable solutions beyond their national currency.

Could stable digital currencies like GLX, designed to preserve value on a global context rather than being codependent of a single currency or country, be a potential alternative for Argentina? If there’s something to be said about Argentines is that they’re not afraid to take the lead and they will do it with passion — so their will to try new things, especially when it comes to their long-term well being, is already there.

Disclaimer: This information does not, and is not intended to, constitute legal advice; and is meant for general informational purposes only.

By: Eva Contreras — Globcoin CMO

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