Argentinian Tax Authority Wins Landmark Case to Confiscate Funds From a Digital Account – Regulation Bitcoin News

The Argentine Revenue Agency (AFIP) has won a historic lawsuit to seize taxpayers’ funds from a digital account. The case, which was won on appeal in the Federal Chamber of Mar del Plata, could lead to further such seizures and include cryptocurrencies as part of the organization’s stricter policy.

The Argentine tax authority will seize funds from the digital account

The eyes of regulators around the world have turned to fintech and crypto companies and their operations. The Argentine Revenue Agency (AFIP) recently won a historic lawsuit in the area, allowing it to seize funds from a digital account in the country to pay off tax debts. The request, first rejected by a judge and then accepted on appeal in the Federal Chamber of Mar del Plata, could be the first of many such seizures.

The institute will be able to confiscate all the funds owed to the state, adding 15% more for interest and processing costs. The chamber says it finds no reason not to consider these and future funds, which were held in a Mercado Pago digital account, as part of the account holder’s assets.

Furthermore, the ordinance states that “the increase in economic and financial activity through the use of digital accounts imposes the need to interpret the law according to current circumstances” and that these technologies cannot become means of evasion for taxpayers.

The organization added this type of wallet to its list of assets that can be confiscated in February.

Cryptocurrency could also be confiscated

In the eyes of analysts, the same criteria applied to digital accounts could be used to confiscate cryptocurrency. Eugenio Bruno, a cryptocurrency and fintech lawyer, told Iproup that cryptocurrency assets perform functions of units of account and store of value and can also be used to make payments.

In this way, they could be seized due to their money-like abilities. However, the management of these assets is determined by the possession of their private keys, and it is then that an eventual seizure can be difficult to execute.

Bruno states:

In cases where cryptocurrencies are held through exchanges, the possible AFIP order could indicate that the private keys corresponding to the digital accounts of the taxpayers affected by the embargoes cannot be used to organize transfers.

However, when these keys are not held by the institutions, the applicability of the policies becomes complicated, as the user may not present the private keys of his wallet to the authorities.

What do you think about the seizure of digital accounts in Argentina? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as being late in the game, entering the cryptosphere when the price hike occurred in December 2017. Having a background in computer engineering, living in Venezuela and being influenced by the cryptocurrency boom on a social level, he offers a point of view. different on the success of cryptocurrencies and how it helps those without banks and the underprivileged.

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