The use of cryptocurrency in Argentina is growing despite strict government measures. This article examines the current landscape of crypto assets in the country and regulatory changes.
Trends in Cryptocurrency Use in Argentina
As of now, Argentina has registered over 1.3 million cryptocurrency users, accounting for 2.94% of the total population. In recent years, there has been a steady increase in interest towards crypto assets despite strict government limitations. This is largely attributed to high inflation and restrictions on foreign currency.
Regulatory Measures and Their Consequences
In 2022, the Central Bank of Argentina implemented several measures limiting the use of cryptocurrency within traditional financial structures. Notably, it banned crypto trading through banks and specialized services. This decision was made under pressure from the International Monetary Fund, leading to shifts in cryptocurrency policy.
Cryptocurrency Mining and Tax Policy
Mining cryptocurrency is allowed in Argentina and is thriving, aided by subsidized electricity. The town of Sorradino, for example, is investing in mining equipment to fund infrastructure improvements. The taxation of crypto assets is also regulated, with a capital gains tax of up to 15% for individuals and 25% to 30% for legal entities.
Cryptocurrencies are gaining traction in Argentina amid economic challenges. Citizens are turning to crypto assets as an alternative means of protecting their savings, despite strict regulations, which could indicate a promising future for this sector in the country.
