Taxes and regulation of cryptocurrencies: this is what Argentina and the world try

It has been more than a decade since Satoshi Nakamoto created the queen cryptocurrency, Bitcoin. More than ten years in which more and more cryptocurrencies were appearing (there are thousands and counting) in a market that lived on the fringes of the law until rather recently, when they began to enter into force laws that try to regulate these digital assets. And with an outlook, it is inevitable to wonder how it will affect the sector, if there will be more and more regulations and restrictions, or if banks will increase the pressure on these currencies.

In Europe, the regulation began in 2018 with the promulgation of the Fifth Directive of the European Union (EU) arrived on November 12, 2018. A regulation approved by Parliament to strengthen the battle against money laundering included in the Directive on the Prevention of Money Laundering and Terrorism Financing (AMLD), which introduced the regulation of the activity of cryptocurrency service providers.

In theory, the member states of the European Union had until January 2020 to transpose the rule. Some countries – such as Germany, France, Luxembourg and Portugal – are working on their own tax frameworks, although by 2022, the MiCA (Market in Crypto Assets) Regulation is expected to advance.

However, its entry into force was delayed to 2024 for the 27 members of the European Union. MiCA represents the great unified update of the regulation of cryptocurrencies in the European economic space. “This regulation aims to become the core of the regulation of cryptocurrencies and provide legal security to the market, so that it is attractive for developers and investors as well as safe for users and consumers,” says Viñals.

It is about establishing a homogeneous, single legislation for all member countries that would greatly simplify the regulation of said market. From Coinmotion they highlight that its implementation would mean two great advances: any regulated company could operate with total freedom in the EU and the investor would see their protection strengthened.

Raúl López, country manager at Coinmotion, highlights that “this regulation is very ambitious, but necessary, since the development of new products and services related to cryptocurrencies proceeds at breakneck speed, which requires that the legislation be adapted as soon as possible so as not to be left behind and delay the revolutionary development of digital finance that would leave us at a clear disadvantage compared to powerful countries such as China and the United States. “

In the United States there is nervousness about fear that any cryptocurrency could threaten the dollar’s dominance in global finance. This means that there is a certain “fragmentation” in terms of regulations. So as with much of the laws of that country, those related to cryptocurrencies vary from one state to another, and the federal authorities also interpret and regulate them differently.

“In the United States it is even more complicated, as many states go it alone and each applies its regulations and guidelines, being in general quite restrictive and especially in those governed by the Democratic party, although it is not that there are many Republicans with pro-crypto legislation. For this reason, and so that talent and innovation do not have to leave the USA, a movement is beginning to take shape to create a new political party that is truly committed to technological innovation, with cryptocurrencies at its spearhead ” , clarifies Castro-Acuña.

Recently, some milestones have been seen such as the IPO of a cryptocurrency company went public (Coinbase on the Nasdaq) or the launch of the first cryptocurrency ETF (the one from ProShares). However, the challenges of the cryptoassets industry are great to come.

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