Regulation
Four Stories From Argentina, Where Bitcoin And Crypto Rule The Land
In current-day Argentina inflation is no joke and prices change every day. That means it’s fertile ground for bitcoin and crypto adoption. “The central bank has warned repeatedly about the risk of investing in volatile digital currencies, and some adopters are taking it carefully,” says Reuters. Once in a blue moon, mainstream media reports on bitcoin and crypto in a relatively positive light, and Argentina inspired one of those rare articles.
According to Reuters, “crypto penetration in Argentina was 12%, around double the level of Mexico and Brazil.” The cause might be that the peso “has depreciated 14% this year against the dollar” and that “annual inflation rose to 58% in April and could go as high as 70% this year.” Not only that, Argentina is under “capital controls limiting foreign exchange to $200 monthly.” So, there’s a huge incentive to seek refuge in bitcoin and stablecoins.
From Argentina: The Cafe Owner
In the Buenos Aires port of Puerto Madero, the Crypstation cafe recently opened. Screens show “real-time cryptocurrency price quotes” and they accept bitcoin and crypto. Reuters quotes one of Crypstation’s founders, Mauro Liberman:
“The local environment is pushing people to protect their capital in cryptocurrencies and so we see growth speeding up. Throughout Latin America the growth potential is enormous. It is an avalanche that won’t be stopped.”
From Argentina: The IT Specialist
Another interviewee is Victor Levrero, “an IT specialist in Buenos Aires province” who “puts his extra savings into stablecoin and bitcoin each month after using up his $200 quota to convert pesos to dollars.” He told Reuters that he doesn’t even bother with banks anymore:
“Basically, it’s because I lose less. With Argentine inflation of between 60-70%, and fixed terms paying 30-35%, it just doesn’t work.”
BTC price chart for 09/20/2022 on Bitstamp | Source: BTC/USD on TradingView.com
From Argentina: The Self-employed Computer Technician
Even though he’s in computers, Marcelo Vila only has “a small amount invested in bitcoin and Ether.” He’s proceeding with caution, as all newcomers should:
“The idea is to expand the proportion of funds invested in crypto. But until I get to know the crypto market, I can’t put a lot of money into it.”
From Argentina: The Home Miner
The fourth subject is Sebastian Carsorio, who comes from a poor neighborhood and “is looking to dig himself out of poverty using a home-made cryptocurrency mine he assembled with recycled computer parts from his work.” Impressive.
“I repaired the things and put it together in a computer,” he told Reuters at his home, where he had screens showing how the mining is going. He started with Ethereum and then bitcoin – which allowed him to buy some land and go back to school.
“I’ll keep mining because it’s a good way of saving,” Carsorio said, explaining that he gets a better exchange rate for pesos than he would on the street. “When money has been tight, mining has saved me many times.”
How many Argentinians could say something similar? Bitcoin and crypto are taking hold in the country because people need them. The deal the government signed with the FMI that specifically demanded for them to discourage the bitcoin industry in Argentina can only do so much. People need a refuge from inflation and cryptocurrencies provide it, it’s as simple as that.
In recent news that reflect crypto adoption, Bitfarms recently started the engine on their brand new bitcoin farm in Argentina. For their part, the government of the wine-producing region of Mendoza announced that they will accept tax payments in cryptocurrencies.
Featured Image by Pexels from Pixabay | Charts by TradingView
The crypto community is amazed by the reports of zero capital gains tax on U.S.-based crypto projects. The move comes amid Donald Trump’s decision to make crypto a national priority regarding crypto policy and regulations, starting with signing an executive order to develop the national digital asset stockpile. However, experts claim cryptocurrencies and crypto projects developed in the United States may not see zero tax benefits.
Why Is Zero Capital Gains Tax on Crypto May Not Be Possible
Dennis Porter, CEO and co-founder of Satoshi Action Fund, in an X post on January 26 said removing capital gains on crypto entirely depends on US Congress. He asserts it is highly unlikely that the US Congress will include such a proposal in a tax bill in the near term.
He added that the primary obstacle is the significant loss in government tax revenue, making the proposal look difficult to approve currently. The primary agenda for the Trump administration is tax cuts and any policy that threatens those cuts will be sidelined.
The zero income tax on crypto presents significant practical, legal, and economic challenges. The Trump administration will review the anticipated reduction in tax on US-based crypto but not vice-versa, which could be detrimental to equities, bonds, and other financial instruments.
Eric Peterson, policy director at Satoshi Action Fund, said:
Capital gain taxes on crypto is not going to 0% folks. Congress makes tax policy, not the president. Work towards attainable goals like the de minimis exemption.
Recently, John Deaton discussed the ambiguity surrounding U.S.-based cryptocurrency projects. He questioned whether projects with operations or foundations abroad, such as Solana and Tezos, would meet the requirements for tax exemptions.
The Crypto Industry Must Lobby for Meaningful Steps Forward
Dennis Porter believes the crypto industry can take meaningful steps forward to reduce tax obligations. He suggests securing a de minimis exemption of $200 for Bitcoin and other digital asset transactions.
“This proposal aligns with the existing $200 exemption for foreign currency transactions. It’s a far more attainable and reasonable goal, with minimal impact on Trump’s ability to renew his tax cuts,” he added.
Americans who live off of Bitcoin and digital assets should not have to report every small transaction, such as buying coffee, meals, or groceries, for tax purposes. This is an overly burdensome task and it’s time we pursue this simplification of the tax code.
Porter reveals that the U.S. Congress has bipartisan support for this idea and it could become a reality with de minimis exemption. In order to be successful, it must be tied to inflation and bipartisan support that balances innovation and fairness.
Crypto Market Bullish on Zero Crypto Gains Tax Proposal
The crypto market participants are bullish on the US-based crypto and likely zero tax on these crypto as the Trump administration introduces pro-crypto policy and regulations.
Eric Trump confirmed advocating for zero capital gains tax for the U.S.-based crypto projects. ‘Made In USA’ crypto such as XRP, Solana (SOL), Hedera (HBAR) and others will benefit from tax cuts. As per CoinGecko, the US-based crypto market cap is over $560 billion.
Meanwhile, Eric Trump hinted at a 30% capital gains tax on non-US crypto projects. As per experts, this sharp divide is designed to attract global crypto investments to the United States.
Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space.
At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting.
Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Pro-XRP lawyer John Deaton has raised critical questions regarding tax exemptions for U.S.-based cryptocurrency projects. His remarks focus on identifying which projects qualify for the proposed zero capital gains tax and the implications for companies with global affiliations.
Crypto Lawyer John Deaton Raises Concerns Over U.S. Tax Policies
In a recent tweet, John Deaton discussed the ambiguity surrounding U.S.-based cryptocurrency projects. He questioned whether projects with operations or foundations abroad, such as Solana and Tezos, would meet the requirements for tax exemptions.
Solana Labs, headquartered in San Francisco, operates under the Solana Foundation based in Switzerland, while Tezos was developed by U.S.-based Arthur and Kathleen Breitman but is governed by the Switzerland-based Tezos Foundation. Deaton’s inquiry centers on whether such hybrid structures qualify as U.S.-based entities under the proposed tax policies.
John Deaton also pointed to cryptocurrencies like XRP, XLM, HBAR, AVAX, and XCH, which may face fewer jurisdictional hurdles. These projects meet the criteria on the surface, potentially positioning them to benefit from the zero capital gains tax.
Moreover, Deaton emphasized the potential for tax incentives to drive broader adoption of cryptocurrencies as corporate treasury assets. He questioned whether companies adopting digital assets like XRP, XLM, and HBAR would gain a competitive edge under the proposed zero capital gains tax policy.
He also raised concerns about the treatment of foreign entities with U.S. operations, such as Hut 8, and their eligibility for tax benefits.
More so, recently the pro-XRP lawyer highlighted four key objectives for the White House Crypto Council. He urged its members to focus on critical areas like SAB 121, the establishment of a strategic Bitcoin reserve, crypto tax payments, and overarching crypto taxation policies.
U.S. Crypto Companies and Mining Firms Could Reap Benefits
John Deaton further explored how U.S.-based companies, including Ripple, Gemini, and ConsenSys, might benefit from the tax exemption if it applies to corporations. The tax breaks could incentivize these firms to expand their crypto holdings and encourage other companies to adopt cryptocurrency as a reserve asset.
Deaton also addressed the status of Bitcoin miners like Riot Platforms and Marathon Digital Holdings. These U.S.-based miners might qualify for the exemption, but questions remain about companies like Hut 8 Corp, a Canadian entity with expanding operations in the U.S. John Deaton highlighted the need for clarity on whether international companies with significant U.S. activities could also benefit.
Treasury Reserve Strategies and Corporate Crypto Adoption
Another key issue raised by Deaton involves corporations adopting cryptocurrencies like Bitcoin, XRP, and HBAR as part of their treasury reserves. He questioned whether such strategies would qualify these companies for tax benefits under the new policies.
Prominent firms like MicroStrategy, known for its Bitcoin holdings, could stand to gain from the tax exemption if their crypto reserve strategies align with the proposed framework. The policy might also encourage other companies to include crypto in their balance sheets.
More so, recently, Deaton also emphasized the broader challenges facing the cryptocurrency industry. He criticized past regulatory actions by the U.S. Securities and Exchange Commission (SEC), which he described as resource-draining and counterproductive.
John Deaton called for an end to what he referred to as “crypto wars,” urging a shift toward clearer regulations to support innovation.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Donald Trump’s crypto policies have ignited a sense of optimism within the industry, hinting at a new era of growth and innovation. The US Securities and Exchange Commission’s decision to rescind SAB 121 has further fueled confidence. Experts hope that the abolition of SAB 121 will pave the way for the establishment of Bitcoin banks.
Notably, Stacy Herbert, Director of El Salvador’s Bitcoin Office, has expressed hopefulness about banks holding Bitcoin. Her statement reflects a general excitement surrounding the integration of Bitcoin and other cryptocurrencies into the US banking industry.
SAB 121 Rescission Greenlights Bitcoin Banking
In a recent X post, Stacy Herbert, the Director of Bitcoin Office, El Salvador, commented on the potential acceptance of Bitcoin in financial institutions. While her optimism is mainly driven by the SEC’s recent abolition of SAB 121, Herbert stated, “Bitcoin banks are coming.”
Herbert’s post came in response to MicroStrategy founder Michael Saylor’s X thread on the withdrawal of SAB 121. She emphasized the benefits of Bitcoin banks, suggesting that integrating Bitcoin into traditional banking could potentially boost investments.
SEC Withdraws SAB 121, Releases SAB 122
In a phenomenal development, the US SEC withdrew Staff Accounting Bulletin No. 121 and released Staff Accounting Bulletin No. 122. While SAB 121 restricted banks’ custody of cryptocurrencies, SAB 122 reverses the rule that forced entities to log a liability when protecting client crypto assets.
SEC Commissioner Hester Peirce, who now lead the newly formed Crypto Task Force, responded to the SAB 121 abolition with an X post that read, Bye, bye SAB 121! It’s not been fun.”
Bye, bye SAB 121! It’s not been fun: https://t.co/cIwUc0isUE | Staff Accounting Bulletin No. 122
— Hester Peirce (@HesterPeirce) January 23, 2025
Similarly, Senator Cynthia Lummis expressed her contentment with the SEC’s action, stating,
SAB 121 was disastrous for the banking industry, and only stunted American innovation and advancement of digital assets. I am THRILLED to see it repealed and get the SEC back on track to fulfilling its intended mission.
Trump Government Fights Operation Chokepoint 2.0
Joe Biden’s administration has been accused of stifling the crypto industry by pressuring banks to sever ties with crypto businesses, a move critics have dubbed “Operation Chokepoint 2.0. Coinbase CEO previously said that the Biden government was trying to “kill” the entire crypto ecosystem. The SEC’s SAB 121 was also such a move that stifled the crypto economy.
However, the US lawmakers have recently launched investigations into the matter, examining the government’s regulatory overreach. While many including Brian Armstrong, Hayden Adams, and Paul Grewal have openly raised voices against Operation Chokepoint 2.0, the US Oversight Committee pledged to address the issue.
Regulatory Shifts Mark the Future of Bitcoin Banks
Trump’s executive order that focuses on crypto has ushered in a new era of crypto markets in the US. Recently, the President signed an executive order to develop a national digital asset stockpile, sparking community enthusiasm. These policy shifts, especially the abolition of the controversial SAB 121, signal the emergence of Bitcoin banks.
In anticipation of the US banking industry’s adoption of crypto, Draper University Founder Tim Draper stated,
Goodbye to SAD SAB 121. We welcome banks to the new world of Bitcoin. Banks don’t have to pretend that the dollar is better anymore.
Moreover, Bank of America CEO Brian Moynihan’s assurance that the US banking industry would embrace cryptocurrencies upon regulatory approval has bolstered hopes for mainstream adoption. Circle CEO Jeremy Allaire also remains bullish on the financial institutions’ endorsement of digital assets.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Ethereum Tests Massive Falling Wedge – Breakout Could Target $4K Cycle Highs
US Crypto Projects Unlikely To See Zero Capital Gains Tax Benefit: Experts
Dogecoin Price Hits Double Bottom To Trigger Massive Rally, Here’s The First Target
BTC & Alts Mainly Consolidate, SHIB & VINE Steal Spotlight
SUI Jumps 5% in 24 Hours, But This Crypto Could Steal the Show
Can Dogecoin Price Hit $20? Here’s What Will Happen If DOGE Repeats Previous Cycles
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Bitcoin23 hours agoBlackRock IBIT Bitcoin ETF Set for Potential In-Kind Upgrade
-
Market22 hours agoCardano Investors Anchor for ADA Price at $1 By HODLing
-
Altcoin22 hours agoJUP Price Soars 8% As Solana DEX Jupiter Acquires Majority Stake In Moonshot
-
Regulation24 hours agoMicroStrategy May Face Tax Issues Over $19 Billion Unrealized Bitcoin Gains: Report
-
Market20 hours agoCrypto Czar Dismisses Securities Label for NFTs and Memecoins
-
Blockchain19 hours agoVirtuals Protocol Expands To Solana, Launches Meteora Pool
-
Market18 hours agoHBAR Price Stuck Under $0.40 as Bears Tighten Grip
-
Market17 hours agoJupiter Strengthens Meme Coin Trading With Moonshot Acquisition
✓ Share: