Argentina Tax Agency Accelerates Digital Wallet Seizures CryptoBlog

Argentina’s tax agency, AFIP, has stepped up seizures of digital wallets from taxpayers in the country. The institution managed to seize more than 1,200 digital wallets from taxpayers who were in debt and did not have a bank account, or other assets that could be recovered by the courts. While the organization has yet to order any crypto-related seizures, it may be possible in the future.

Argentina’s tax agency seizes over 1,200 digital wallets

Tax regulators around the world are increasingly aware of the various ways taxpayers can hide their funds to avoid paying taxes. Argentina’s tax agency, AFIP, has been busy taking control of the institution’s debtors’ digital wallets. These digital wallets are custodial services provided by fintech companies to third parties, which in some ways are not directly related to banks. The basis for the seizures was established in February when the AFIP included them in the list of seizable assets.

According to local media, since last February, the institution managed to execute 1,269 seizures against clients who had accounts on these platforms. Previously, the organization had 19 months without performing any debt collection due to the measures taken by the Argentine government to protect the properties of its citizens during the cycle of the Covid-19 pandemic.


Input procedures

Although there are no concrete procedures outlining when the tax authorities can seize these types of assets from debtors, seizures usually take place when there are no more liquid assets that can be seized, such as funds in a bank account or other property. The Argentine tax agency already has the data of each account on these platforms due to legal requirements. This allows the organization to easily access these funds.

However, the procedures can only be executed if the digital wallets are provided by domestic companies, which is why so much money is held outside Argentina’s borders by citizens of the nation. According to official estimates, more than $360 billion is undeclared, with a significant portion of these funds beyond AFIP’s reach.

There are no limits on the assets that can be seized by AFIP, and this includes the possibility of having cryptocurrency held on Argentine exchanges or national custodians also seized, given the popularity enjoyed by currently crypto in the country. However, there have been no reports about it yet.

What do you think of the actions of the Argentine tax authorities regarding digital wallets? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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