September 13, 2024 - 1:31 PM
As reported by the CNV, Binance has become an authorized PSAV in Argentina. In this sense, it is eligible for users to join the official money laundering program.
Binance has decided to register with the National Securities Commission (CNV) as a Virtual Asset Service Provider (PSAV), which will allow it to receive funds from money laundering related to cryptocurrencies such as Bitcoin. This move has raised concerns among users about whether their digital assets will be more exposed to the scrutiny of the local regulator and the possible tax implications.
In this way, although the platforms comply with the CNV requirements, evading local regulation allows them to protect information about their users' cryptocurrency operations and holdings. However, concerns about AFIP surveillance and possible tax obligations remain present among investors.
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September 13, 2024 - 1:31 PM
Cryptocurrency laundering: Binance was authorized by the CNV so that its users can regularize assets
As reported by the CNV, Binance has become an authorized PSAV in Argentina. In this sense, it is eligible for users to join the official money laundering program.
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The rate will increase in the following stages (10% in stage 2 and 15% in stage 3). Amounts less than the above will have a rate of 0%.
The rate will increase in the following stages (10% in stage 2 and 15% in stage 3). Amounts less than the above will have a rate of 0%.
Binance has decided to register with the National Securities Commission (CNV) as a Virtual Asset Service Provider (PSAV), which will allow it to receive funds from money laundering related to cryptocurrencies such as Bitcoin. This move has raised concerns among users about whether their digital assets will be more exposed to the scrutiny of the local regulator and the possible tax implications.
In this way, although the platforms comply with the CNV requirements, evading local regulation allows them to protect information about their users' cryptocurrency operations and holdings. However, concerns about AFIP surveillance and possible tax obligations remain present among investors.
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As reported by the CNV, Binance has become an authorized PSAV in Argentina. In this sense, it is eligible for users to join the official money laundering program.
"We support regulation and believe this is key to ensuring the industry continues to evolve and adoption is done in a safe manner. As an industry leader with licenses in jurisdictions around the world, Binance is committed to the development of the crypto segment globally and in Argentina, in compliance with local requirements," the exchange said.
He added, "Argentina is a key market for Binance. We will continue to work closely with the authorities to develop the industry in the most sustainable and secure way for the benefit of the crypto community and society at large."
Cryptocurrencies and money laundering
The Federal Public Revenue Administration (AFIP) has included virtual assets in a whitewash for the first time. These are mainly what are known as cryptocurrencies. If someone has an undeclared account of this type outside the country, they have the opportunity to regularize it, given that it is very likely that, in the short term, the Argentine tax authorities will be able to access this information.
The holder should take into account that externalization is convenient simply to keep the accounts in order and at a very low cost, but also runs the risk that in the medium term the AFIP may be aware of the data of his account. The Organization for Economic Cooperation and Development (OECD) is working to include cryptocurrencies in the financial information exchange agreement that is already in force for bank accounts.
According to the CEO of SDC Tax Advisors, Sebastián Domínguez, the international organization is already working on it and states that “sooner or later it will include it.”
The tax expert recalled in an interview with Ámbito that when the OECD began to analyze the agreement for bank accounts that has been in force for several years, there were many professionals who were skeptical, and in the end it was finalized.
It should be remembered that this agreement was one of the first coordinated actions between States with the aim of putting limits on tax havens in which large corporations tried to open accounts and create companies to avoid paying taxes in their countries of origin.
According to a report by the Inter-American Center of Tax Administrations (CIAT), unlike traditional financial products, cryptoassets can be transferred and held without the intervention of traditional financial intermediaries, such as banks, and without any central administrator having complete visibility of the transactions carried out or cryptocurrency holdings.
“The crypto market has also given rise to new intermediaries and service providers, such as crypto exchanges and wallet providers, many of which are currently unregulated,” they note.
“These developments mean that cryptoassets and related transactions are not comprehensively covered by the OECD/G20 Common Reporting Standard (CRS), increasing the likelihood of their use for tax evasion and undermining the progress made in tax transparency through the adoption of the CRS,” the report said.
The money laundering procedure allows the inclusion of crypto accounts, which are treated in the same way as other types of accounts, with a deductible of up to US$100,000. Only digital assets that are in Virtual Asset Service Providers (PSAV) registered with the National Securities Commission (CNV) can be declared.
In this regard, provider Buenbit points out that anyone who wants to launder their cryptocurrencies “must deposit their virtual assets on a platform enabled to issue the necessary certificates.”
“The user must prove that they have cryptocurrencies as of December 31, 2023, since, according to the law, it does not cover assets acquired after that date.”
For stage 1 of the whitening process as of September 30, the rate applicable to the surplus equivalent to US$100,000 will be 5% as a special regularization tax.
The rate will increase in the following stages (10% in stage 2 and 15% in stage 3). Amounts less than the above will have a rate of 0%.
Another service provider, Lemon, also highlights the convenience of registration. It reminds that the value at which cryptocurrencies will be laundered will be the highest price they have shown between the date of purchase and December 31, 2023.
