- The tax authority of Argentina has seized more than 1000 crypto wallets. These are the wallets which belonged to the taxpayers of the country who showed delinquency.
- AFIP ordered cryptocurrency exchanges and payment service providers to deliver monthly reports on users of their platforms.
- AFIP’s current standard operating procedure typically targets bank accounts and other liquid assets to recoup debts as the first port of call.
But Why??
“Wow!!! A new currency. That is also completely decentralized. Wait! Does that mean we can keep our money in the crypto wallets to stop paying taxes?”
Well. Not anymore– Replied Argentina.
The tax authority of Argentina has seized more than 1000 crypto wallets. These are the wallets which belonged to the taxpayers of the country who showed delinquency.
According to a report from local media outlet iProUP, courts across Argentina authorized the seizure of 1,269 cryptocurrency wallets belonging to citizens with outstanding debt to Argentina’s Federal Administration of Public Income (AFIP).
AFIP ordered cryptocurrency exchanges and payment service providers to deliver monthly reports on users of their platforms.
The government is clearly showing their intention to go after the cryptocurrency wallets with full force.
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How Did They Even Do It?
When the firms started supplying their users’ data to the country’s tax authority, AFIP took a lot of action since then about the issue. These actions include enforcing embargoes on the holdings of the errant taxpayers.
This is done by taking control of their crypto wallets linked to them over the past few months.
AFIP’s current standard operating procedure typically targets bank accounts and other liquid assets to recoup debts as the first port of call.
Let’s assume a scenario where the taxpayer can’t settle the monetary amount they owe; in that case, to pay their debt, AFIP will look for any other belonging linked to the individual. If anything comes, it will be seized by the government.
While Argentina’s tax authority hones in on the digital assets of non-compliant taxpayers, its government and central bank have the absolute right to decide what kind of treatment to be provided to those currencies.
This news went viral across the globe. President Alberto Fernandez made headlines. This is because he highlighted the potential for cryptocurrencies to help everyone fight inflation, which has been the biggest issue in the country since August 2021.
This happened just as Argentina’s central bank president Miguel Pesce hinted at forthcoming regulation of the industry and its intersection with the conventional financial system.
Source: https://www.thecoinrepublic.com/2022/07/05/the-government-of-argentina-seized-mass-crypto-wallets/