The Argentine cryptocurrency exchange Lemon Cash announced that it will delegate the custody of cryptocurrencies to the company Lanin Pay, licensed in El Salvador. In this way, the company is exempted from reporting the movements of crypto assets of its users to the tax control bodies of Argentina, reported the site Criptonoticias.com.

The announcement was made known through an email in which Lemon detailed to its clients the changes in the terms and conditions of use and in the privacy of the platform.

In addition to expressing this transfer of custody to a foreign company -whose name seems to be related to the Lanin de Neuquen volcano, where the company’s creators come from-, Lemon also clarifies in the message that this has no impact on the use of the platform.

Tax changes after moving to El Salvador
There is an indirect but important consequence that follows from this change announced by Lemon. As now the custody of cryptocurrencies is in charge of a foreign firm, the obligation to inform the Federal Administration of Public Revenues (AFIP, the tax collection body of Argentina) no longer applies about the possession of crypto assets by their users.

This question was answered by Borja Martel, CCO and co-founder of the Argentine company. On Twitter, a user inquired about this issue and the businessman replied that, indeed, AFIP can no longer request information on this.

Buenbit, another Argentine exchange with services similar to Lemon, clarifies in its terms and conditions that custody of crypto assets is delegated to a company based in the United Kingdom. Therefore, the same exemptions already applied for that firm.

However, operations in pesos and with the debit cards of both exchanges are plausible of being detected by the treasury.

The same occurs with bank transfers, which, although they are made from local companies of the firms in Argentina, appear automatically in the bank records of each person.

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Therefore, the change occurs only in the holding of cryptocurrencies, but not in expenses in pesos or bank transfers to or from Lemon or Buenbit accounts, as both companies clarify in their terms and conditions.

Lemon history in El Salvador

The connection between Lemon and El Salvador is not unprecedented. In September, the same day that that country adopted the cryptocurrency devised by Satoshi Nakamoto as legal tender, the Argentine firm collaborated with a local financial company for the adoption of bitcoin.

Specifically, the exchange helped with the technical part of the software, as reported by CriptoNoticias at the time. However, company executives told this medium that they were continuing to study new alternatives in Central America, a fact that took place a few months later with the announcement of Lanin Pay S.A.