Argentine Tax Authority AFIP Increases Supervision and Discovers Three Hidden Cryptocurrency Mining Farms

Three different unauthorized bitcoin mining farms were discovered last week by the Argentine tax authorities (AFIP). The farms were situated in Cordoba and San Juan, respectively. One of these places included more than $600,000 worth of hardware, and the institution was able to find the farms according to how much electricity they were using.

Three different unauthorized crypto mining farms are discovered by the Argentine Tax Authority

The Argentine tax authority (AFIP) has focused on the illicit cryptocurrency mining industry and in the past week has already found three hidden cryptocurrency farms. One of the farms was in San Juan, while the other two were in Cordoba. The group discovered the final one because a company without a license was importing mining equipment.

Due to the two farms in Cordoba’s high energy requirements, their presence was discovered. Authorities claim that the mining operations were spending $7,000 each month on 85,000 kilowatts of energy. One of the farms’ operators received over $200,000 in unreported bonuses, while $600,000 was invested in

The Argentine tax office was able to identify the bitcoin address that received the coin mined in the operation through the procedure carried out in the Province of San Juan. The apparatus was housed in a fruit-storage-oriented refrigerator chamber.

Argentine Tax Authority AFIP
Argentine Tax Authority AFIP

Mining Trend in Argentina

According to researchers, Argentina’s affordable and largely reliable electricity supply, along with the availability of high-speed internet, have made bitcoin mining a viable industry. Due to this, Argentina has even come into the crosshairs of foreign cryptocurrency companies looking to set up shop there.

One of them is Bitfarms, a Nasdaq-listed mining conglomerate that is constructing a mega farm in the nation to power 55,000 miners as part of an expansion of its mining capacity to reach 8 exahashes per second (8 EH/s) by the end of this year.

However, the nation started to stop providing power subsidies to cryptocurrency mining companies in February, and Cammesa, the energy wholesaler, increased the cost of power for these operations by a factor of four.

Crypto mining rules in Argentina

In terms of cryptocurrencies, Argentina has acted as a regional leader. Cryptocurrencies are not legal tender and are not issued by the government’s monetary authority, in accordance with section 765 of the Argentine Civil and Commercial Code. They may be regarded as money but are not legal tender because they are not a required method of paying off debts or obligations. According to the National Constitution of Argentina, the Central Bank is the only institution authorized to issue legal currency .

Click Here to read about Energy Cost for Crypto Mining in Argentina

Argentina has long kept tight limits on foreign currency exchange. However, it was one among the first to accept cryptocurrencies, partly as a hedge against inflation and a workaround for restrictions on the export of foreign money.Despite the fact that they are not forbidden, cryptocurrencies are subject to restrictions in Argentina, particularly in the fields of taxation and anti-money laundering.

 

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