Governments all over the world have set up regulations to control the trading of cryptocurrencies. In Argentina, for instance, the Federal Administration of Public Income (AFIP) recently announced that from 2021, miners of cryptocurrencies in the country will have to pay taxes for their activities. This decision is part of an effort to combat black money and promote a more transparent cryptocurrency trading.
AFIP has also started to seize cryptocurrency mining equipment from those who do not comply with its strict regulations. These equipment are immediately confiscated when AFIP conducts an inspection at the border and finds Bitcoin or any other cryptocurrency mining equipment. Non-compliance of the regulations can also lead to fines, imprisonment or even closure of the company.
Cryptocurrency mining equipment is a costly investment and a lucrative way to get cryptocurrencies. Most miners use these equipment in combination with mining algorithms to get cryptocurrencies. Cryptocurrency mining takes a lot of energy, so it is considered as a potentially costly and not always profitable activity.
Because of this, AFIP is striving to ensure that miners comply with its regulations. This agency has suggested that miners should submit the required documents to prove that they are aware of the latest tax regulations and are up-to-date with their tax obligations. This way, miners will be aware of their responsibilities and AFIP will be able to collect the appropriate taxes.
Though seizing cryptocurrency mining equipment at the Argentina border is a drastic measure, it is a necessary step to control cryptocurrency trading and prevent illegal use of these currencies. AFIP has committed to ensure that miners comply with their tax obligations and ensure that cryptocurrency trading is done in a fair and transparent manner.
