Argentina’s newly formed government, led by the self-proclaimed libertarian, Javier Milei, has announced plans to facilitate the legalization of cryptocurrency holdings, even for individuals who have failed to declare them for tax purposes.
On December 27, the Argentine Congress introduced the “Law of Bases and Starting Points for the Freedom of Argentines,” a comprehensive 351-page bill that encompasses reforms across various sectors, including taxation, labor, criminal justice, energy, and electoral processes.
This legislative initiative marks the beginning of Milei’s controversial reformist agenda.
Within the bill, there are provisions related to cryptocurrency and tax compliance.
Specifically, it introduces an “asset regularization scheme,” allowing taxpayers to legalize their assets without the need for additional documentation to prove their origins.
Under this regularization scheme, taxpayers will be subject to a flat tax rate on their assets.
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Those who declare their holdings by the end of March 2024 will face a 5% tax rate, while those declaring between April and June 2024 will be subject to a 10% tax rate. From July to September 2024, the tax rate will increase to 15%.
Previously, in December, Diana Mondino, Argentina’s Minister of Foreign Affairs, International Trade, and Worship, announced a decree focused on economic reform and deregulation.
While not explicitly mentioning cryptocurrencies, the decree allowed for the use of BTC and other digital currencies under certain conditions.
It included provisions enabling debtors to settle their obligations using currencies not recognized as legal tender in Argentina.
Javier Milei ascended to power amid soaring inflation rates across Argentina.
Notably, he has previously referred to Bitcoin as a means to return money to the private sector, but since assuming office, he has not made any public statements regarding digital assets.
Argentina’s move to ease cryptocurrency legalization procedures reflects a broader trend seen in various countries worldwide, as governments grapple with regulating the burgeoning crypto market while accommodating its growing popularity among citizens.
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