The Government of Argentina published through its official website a document that functions as a kind of „ABC“ for the commercialization and use of cryptomonies under local legislation. Under the name of: „What are cryptomoney?“ The paper details the differences between virtual currencies and other means of payment, such as digital wallets, among others. It also explains the procedures for validating these transactions.
Based on the information gathered, the guide seeks to review the basic and fundamental concepts on the subject, noting the differences from other digital payment systems, such as PayPal, while seeking to provide security recommendations.
Bitcoin Demand Increases in Argentina as Non-Compliance Approaches
Perhaps the most remarkable part of the publication is the one that deals with the regulation of cryptoactives. In the first paragraph it is clarified that:
„Crypto currencies can be used like any other payment method, but their use is not regulated by governments or financial institutions.“
In the same document, the government lists the main cryptoactives, where to buy them and what the requirements are for doing so: Bitcoin, Ethereum, EOS, Litecoin, Monero, Stellar Lumens, XRP, NEO and IOTA.
„Crypto currencies are validated by people called miners who are the scribes of crypto currency,“ they explain. „When a transaction is recorded, the code of the previous transaction is also recorded. In this way, each new transaction is linked to the next one, guaranteeing its security“.
Argentine banks are ready to use RSK Blockchain technology to track payments
Suggested safety measures
As for security measures to buy, maintain and trade crypto currencies, the government recommends downloading official applications from the crypto community, using external wallets or cold wallets, keeping keys in a safe place, buying from official and authorized places, and operating on sites that are registered, legally supported and authorized for banking operations.
The document is published within a context of economic crisis, both local and global, can be interpreted as an official recognition and that may come to mark a turning point in the adoption of crypto in the country, where savers, tied by the limitations on the purchase of foreign currency (exchange traps) already have the official endorsement to invest in cryptomonies.
Argentine legislator wants to see a cryptography backed by the state
Let us remember that, Bitcoin, is free of intermediaries who can exercise control. It is completely voluntary and no central authority needs permission to use the network.
However, in May of this year, the Federal Administration of Public Revenues (AFIP) presented a new tax reform, setting a tax margin of 15% for operations with crypto-currencies, paying special attention to whether they are local or foreign transactions.
The Financial Information Unit is Argentina’s state agency and is a regulatory body responsible for the analysis, processing and transmission of information to prevent the laundering of assets derived from criminal activities.
The publication of this guide by the Government of Argentina, generated some kind of questions and controversy in some people who, through Twitter, expressed their regret.
Posted in Aiuto