Argentina and Cryptocurrency
Argentina Cryptocurrency Laws
Argentina has served as a regional leader in the area of cryptocurrency. Under the National Constitution of Argentina[1] the only authority capable of issuing legal currency is the Central Bank.[2] Cryptocurrencies are not legal currency, see section 765 of the Argentine Civil and Commercial Code, since they are not issued by the government monetary authority and are not legal tender.[3] Therefore, they may be considered money but not legal currency, since they are not a mandatory means of canceling debts or obligations.[4]
Argentina has historically exercised strict controls over foreign currencies. However, it became an early adopters of cryptocurrency, in part to protect against inflation and to circumvent prohibitions on transfers of foreign currency outside its borders.
While cryptocurrencies are not prohibited, the Argentinian government has promulgated regulations with respect to cryptocurrencies, particularly in the areas of taxation and anti-money laundering.
Argentinian National Securities Commission
The Argentinian National Securities Commission has published a communiqué with respect to risks associated with initial coin offerings.
The Financial Information Unit (UIF) has defined cryptocurrencies as a “digital representation of value that can be digitally traded and functions as a medium of exchange; and/or a unit of account; and/or a store of value, but does not have legal tender status in any jurisdiction and is neither issued nor guaranteed by any government or jurisdiction.”
UIF Resolution 300/2014 provides for enhanced reporting requirements with respect to the Anti-Money Laundering Law and the Tax Reform Law.
2017 amendments to the Income Tax Law require that profits derived from the sale of digital currency are considered income and subject to taxation.[5]
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:
