Financial surveillance continues in Argentina, although the government reduced its monitoring
The Government of Javier Milei announced a series of measures that, although they reduce the monitoring of the State on the movements of money from citizens, do not eliminate what financial companies do. The companies in the sector, including banks, virtual platforms and even cryptocurrency exchanges, still have access to such users.
The Customs Control and Collection Agency (ARCA), the Argentine fiscal collection agency called until last year AFIP, increased the minimum bumpers of financial movements that must be reported. According to the official statement, already reported by cryptootics, this is part of a series of measures with the objective of “protecting the privacy of citizens, simplifying tax procedures and promoting economic formalization.”
Now, virtual wallets – which would include cryptocurrency exchanges – will only inform the transfers that exceed 50 million pesos of natural persons and the 30 million legal persons, in contrast to the previous threshold that was 2 million.
In addition to virtual platforms, Arca also reported an increase in the informative threshold for bank transfers and accreditations, cash extractions, fixed deadlines and holdings in liquidation and compensation agents (ALYCS).
The agency also reported that credit cards that have no longer informing Ark all purchases that a person using that means of payment does. “Personal consumption will be protected as all private information,” he said.
This provision is part of a package that also eliminates the informative regime for sectors such as scribe, operations with used cars, payments of expenses and real estate transfers. In turn, it prohibits banks from demanding affidavits of national taxes, and also simplifies the income tax system. All this to encourage the use of savings, as detailed below.
Such a group of measures has been applauded by defenders of freedom and privacy, including Bitcoin (BTC) enthusiasts, an asset that was born as an alternative to the traditional financial system and state control.
Bitcoin was created in 2009, shortly after the global financial crisis. His inventor, under the pseudonym of Satoshi Nakamoto, designed it as a form of digital money that did not depend on banks or governments. Its decentralized operation allows people to send and receive value without intermediaries and without the need to reveal their identity, unlike the traditional banking system.
According to Bitcoiners and defenders of freedom, the government’s decision represents a step in the right direction. However, It is crucial not to confuse this with greater privacy of financial movements on centralized platforms.
This change of approach in state surveillance does not necessarily translate into greater financial freedom. Financial platforms continue to collect, store and share justice, if requested, information from their users.
Financial monitoring does not disappear
In Argentina, Exchange of cryptoactive such as Binance, Ripio, Bitso and Buenbit are registered as suppliers of virtual asset services (PSAV) before the National Securities Commission (CNV). This forces them, as to other financial companies, to comply with the KYC regulations (“know your customer”).
The KYC is that the platforms verify the identity of its users, collecting identifying information such as national passports or documents, address, contact, facial recognition, among other data.
Although Arca no longer receives information about financial transactions of little volume of money, Platforms in the country are still legally required to have that data. This due to the fulfillment of diverse regulations such as money laundering prevention.
A greater advance towards the financial privacy of citizens would imply eliminating Kyc policies. Without the obligation to verify and conserve the identity of the users, the platforms could operate with greater respect for individual privacy, thus offering the true financial freedom that many seek. Until then, the control, although with less monitoring by the State, will continue to be an inescapable reality.
It should be noted that KYC policies are not an isolated issue from Argentina. They are part of international standards that promote agencies against criminal operations such as the International Financial Action Group (GAFI).
Although, regardless of such international agreements, it is ultimately governments that have the sovereign capacity to decide the level of regulation apply in their territory.
Privacy or illusion of privacy?
Although KYC policies were originally designed to combat money laundering and terrorism financing, Many consider that they have become increasingly invasive. This is something that is even part of cryptocurrency exchanges, despite the privacy values that gave rise to Bitcoin.
In Argentina, cryptoactive enthusiasts have not seen greater advances in financial freedom, since in April it was reported that taxpayers reached by the Tax on Personal Assets must declare before the Ark Not only what cryptocurrencies have, but also their public keys.
Although for some it may seem a formality, sharing the public key allows the State to track the entire activity of a Wallet within a cryptoactive network. This level of exposure violates the principle of individual sovereignty defended by bitcoiners, and also opens the door to real security risks, especially considering the history of hackeos to state entities in the country.
In short, although the government defends financial freedom, control in the sector does not disappear.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author’s opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.
