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Argentina’s Milei fires tax agency head over controversial tax on streamers

President Javier Milei has replaced the leadership of the country’s revenue agency following the introduction of a new tax regime targeting digital creators.

Argentine President Javier Milei has fired the head of the country’s tax authority amid backlash over a controversial tax targeting streamers and influencers. 

According to local media reports, Florencia Mizrahi, who had served as the head of Argentina’s federal revenue agency, known as ARCA, was removed from her position following growing criticism over a new tax regime targeting streamers and influencers in the Latin American country. 

The tax plan would require digital content creators to report income generated from social media platforms, such as YouTube, Instagram and Twitch, including earnings from brand deals and advertising. 

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Arca, Blocktower to merge into unified crypto platform

BlockTower’s venture capital arm, BlockTower Venture Capital, will continue to operate independantly.

Arca and BlockTower Capital agreed to merge into a unified cryptocurrency investment platform, according to a Nov. 13 announcement.

“Investors have been clamoring for regulated digital assets investment offerings for years,” Rayne Steinberg, Arca’s CEO said in a statement. 

The merger will help ensure the firms possess “the resources and expertise to effectively manage our current product offerings and broaden our investment options,” Steinberg added.

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Arca Labs partners with Securitize on regulated, tokenized financial products

As part of its partnership with Arca Labs, Securitize will help launch tokenized financial products for the firm, starting with Arca’s registered tokenized treasury fund.

Arca Labs, the innovation arm of digital asset investment firm Arca has partnered with blockchain tech firm Securitize to launch regulated, tokenized financial products.

According to a Sept. 23 announcement, Securitize has signed on to provide a smart contract and issuance platform for the firm, starting firstly with Arca’s tokenized fund dubbed “Arca U.S. Treasury Fund” that was launched in July 2020.

Arca touts it as the first treasury fund registered under the Investment Company Act of 1940 to issue shares as digital assets via the blockchain. The fund meets the same regulatory requirements as a mutual fund, but differs by offering exposure via Ethereum-based digital asset security tokens called “ArCoin.”

Arca states that the fund will typically “invest a minimum of 80% of assets in U.S. Treasury securities.”

Securitize has taken over the fund’s transfer agent role from TokenSoft, and will be tasked with managing regulatory compliance mandates such as investor verification, know your customer and anti-money laundering policies, along with onboarding clients and issuing the fund’s shares via ArCoin. Securitize is a registered transfer agent with over 200 clients and nearly a half-billion dollars in regulated securities issued in the past three years

The transition has seen the fund’s existing outstanding balances burned and automatically reissued under Securitize’s new smart contract to each shareholder.

Additionally, there will be jointly-offered tokenized financial products that will be announced at a later date.

Related: Bitcoin-based security token offering approved in Germany

“Institutions have struggled to meet investor demand because few tokenization companies have met the rigorous regulatory and operational thresholds required by investors,” the announcement stated, adding that the firms are “seeking to channel the growth of fast-developing blockchain technologies within the existing financial services regulatory framework, which we believe to be key for increased investor trust and adoption.”

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