The country’s tax authorities have confiscated more than 1,000 bitcoin wallets connected to overdue taxpayers in Argentina.
In Argentina, judges have ordered the seizure of 1,269 bitcoin wallets belonging to people who owe money to the country’s Federal Administration of Public Income, according to a report by local media site iProUP (AFIP).
In May, AFIP made a clear indication that it intended to pursue bitcoin wallets used by tax evaders by requesting monthly user records from cryptocurrency exchanges and payment service providers.
The usage of cryptographic services was required to authenticate customers, maintain user accounts, and create comprehensive financial statements that included monthly balances, income, and expenses.
Since these companies have been providing the tax authority with this information, AFIP has been able to impose embargoes on the assets found in wallets connected to dishonest taxpayers during the previous few months.
As an initial step in recovering debts, AFIP’s existing standard operating procedure frequently targets bank accounts and other liquid assets. The AFIP will try to confiscate additional assets owned by the taxpayer if they are unable to pay their debt or are unbanked.
The Covid-19 pandemic provided some relief for Argentinians who were being targeted by the AFIP because a 19-month moratorium on asset seizures was put in place to lessen the financial strain on the populace.
The decision was made at a time when Argentinians are still using cryptocurrencies to resist rising prices, a falling peso, and widespread economic unrest. According to a recent Reuters study using data from Americas Market Intelligence, Argentina’s adoption of cryptocurrencies has outpaced that of other South American nations, which was motivated by residents looking for shelter from growing prices.
The regulation of cryptocurrencies has been a point of contention between Argentina’s government and the central bank, as its tax authority focuses on the digital assets of non-compliant taxpayers.
In August 2021, President Alberto Fernandez made news by emphasizing the potential of cryptocurrencies to help fight inflation, just as President Miguel Pesce of Argentina’s central bank hinted at upcoming regulation of the sector and its interaction with the traditional financial system.