Argentinian Tax Authority Strengthens Crackdown on Illegal Crypto Miners
Argentina’s tax body has bolstered its ongoing crackdown on crypto miners who do not declare their operations – and looks set to make good on the government’s pledge to ensure that all crypto-related activity in the nation is taxed.
After ministers called for crypto-related tax reform back in February, the national tax Authority, known locally as the AFIP, last month began identifying and shutting down groups of illegal crypto miners. Now, they have struck again and say they have teamed up with customs and social security officials, per an official government notice. The partnership has already borne fruit – with what the AFIP called a “series” of raids on properties in the town of Río Cuarto, Córdoba.
The raids uncovered “57 mining rigs and 342 video cards with a market value of $420,000.”
The officers claimed that the Río Cuarto miners were using “over” $13,250 worth of electrical energy per month to power their operations.
⭕ AFIP desarticuló en Córdoba dos granjas de minería de criptomonedas 👉 Se detectaron inversiones que superaron los 600.000 dólares en más de 600 placas de video. pic.twitter.com/9TTRraFrx0— El Destape (@eldestapeweb) September 7, 2022
The tax body claimed that its renewed crackdown would help it ensure “the correct declaration of assets.” It also wants miners to clarify details about “the income derived from” their activities and provide details about their crypto wallets – so tax officers can ensure no income is going undeclared.
The body also expressed concern about the mining rigs domestic miners make use of – hinting that many devices may have been smuggled into the nation illegally.
What Sparked the Tax Body’s Crypto Mining Crackdown?
After effectively turning a blind eye to crypto mining for years, the AFIP underwent a change in leadership in August this year. Since then, the body claims it has also “dismantled” mining operations in the provinces of La Plata, Santa Fe, and Mar del Plata.
In September, officers and bailiffs cracked down on a range of mining projects, including a San Juan Province farm where miners had concealed rigs in an area reserved for cooling fruit.