Argentine cryptocurrency company Lemon Cash to set up facility in El Salvador

Argentine cryptocurrency company Lemon Cash to set up facility in El Salvador. The President of El Salvador, Nayib Bukele, has put a lot of pressure on the willingness of international crypto companies to move into his country, opening the door for crypto companies to set up in the country. And there are preliminary signs that its highly anticipated crypto exodus began when the Argentine crypto firm opened a branch in El Salvador.

The Argentine cryptocurrency company Lemon Cash establishes base in El Salvador

As regulatory pressures continue to mount on crypto companies in locations around the world, Bukele appears poised to provide a safe space for companies to operate without the constant threat of moving legal target groups. This seems to be his mindset behind the Bitcoin City project, which promises to expedite residency permits for foreigners and withhold all kinds of taxes except VAT on sales.

And it looks like Bukele has its first earner in the form of an Argentine crypto firm called Lemon Cash. According to El Diario de Hoy, the company has set up a Salvadoran subsidiary called Lanin Pay, which allows it to be “exempt from reporting the movements of users’ crypto files” to the tax authorities in Argentina. Lanin will handle crypto custody for the company, but Lemon claims the move will have no impact on their platform’s users.

In an email, the company informed its customers:

“None of these changes will affect how you use Lemon Cash on a daily basis. Your operations will not be affected in any way and you can continue to work with fiat pesos and cryptocurrencies as usual. “

Lemon Cash is no longer taxable when operating in El Salvador

With the management of cryptocurrencies through the platform currently being managed by a foreign company, the media company stated that Lemon is no longer required to submit data about crypto transactions to customers to the Federal Public Revenue Administration. All transactions with fiat and debit cards are still subject to tax returns, but as long as the transaction is carried out in crypto, the taxpayer cannot fulfill the obligation in this case.

It is not yet entirely clear how the Argentine tax authorities feel about this move. However, it seems that the move is not without precedent.

The media company reports that Buenbit, another Argentine platform offering “similar services to Lemon,” is using a UK-based intermediary to hold its crypto files – meaning its customers enjoy the same tax exemptions.

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