Argentina’s New Government Introduces New Bill to Regulate Crypto Holdings for Tax Payers

Source: Quatrox Production/AdobeStock

Argentina’s newly elected government, led by libertarian Javier Milei, has unveiled its plans to simplify the process of legalizing cryptocurrency holdings, even for individuals who may not have accurately reported them for tax purposes.

On December 27, the government introduced the ‘Law of Bases and Starting Points for the Freedom of Argentines’ to the Argentine Congress.

El Presidente Javier Milei envió al Congreso de la Nación la Ley de Bases y Puntos de Partida para La Libertad de los Argentinos.

Con el espíritu de restituir el orden económico y social basado en la doctrina liberal plasmada en la Constitución Nacional de 1853, presentamos al… pic.twitter.com/5yYSBYA751

— Oficina del Presidente Javier Milei (@OPEArg) December 27, 2023

The proposed bill outlines reforms spanning various sectors, including taxes, employment, crime, energy, and elections, marking the commencement of Milei’s ambitious reform agenda.

Within this legislative framework, notable provisions address cryptocurrency in relation to tax procedures. A pivotal aspect is the introduction of an “asset regularization scheme” that enables taxpayers to declare specific assets without requiring additional proof regarding their origin.

If approved, residents declaring their assets by March 2024 will face a 5% tax rate, which increases to 10% for declarations made from April to June 2024 and further to 15% for those made from July to September 2024.

This legislative initiative reflects Argentina’s commitment to creating a more accessible and transparent process for individuals to formalize their cryptocurrency holdings.

The move also corresponds with earlier hints from Diana Mondino, the minister of foreign affairs, international trade, and worship, regarding the potential acceptance of cryptocurrencies under specific conditions outlined in the “Bases for the Reconstruction of the Argentine Economy” decree passed on December 20.

Javier Milei’s New Regime and Outlook on the Digital Asset Space

The inauguration of Argentina’s new president on December 10 marked the beginning of a commitment to significant economic reforms.

These proposed reforms include the dissolution of the central bank and a set of measures designed to reduce government size and spending.

JUST IN: Bankers protest in Argentina against Javier Milei’s deregulatory reforms.

Wait until #Bitcoin adoption takes off.
Banks will be redundant. pic.twitter.com/nYQJ1XzFVu

— Radar (@RadarHits) December 24, 2023

During his campaign, the newly elected president, Milei, projected a distinct persona and advocated for disruptive measures in a nation grappling with a staggering 160.9% annual inflation rate as of November 2023.

Source: Datamarco

While Milei may not be officially recognized as a pro-crypto advocate, his principles are perceived to resonate closely with several core tenets of the cryptocurrency movement.

He envisions a future where advancing technology facilitates the transition toward a free society governed by contracts between individuals.

In a November 23 news report, the president hinted at Bitcoin as a potential alternative to traditional monetary authorities. He asserted that the “central bank is perceived as a scam, and Bitcoin symbolizes a return of money to its original creation, the private sector.”

“#Bitcoin represents a return of money to its original creator – The Private Sector.”
– Javier Milei, President pic.twitter.com/Siz6RpwbCy

— Vivek (@Vivek4real_) December 27, 2023

Meanwhile, Hernán González, the press officer of the non-governmental organization Bitcoin Argentina, spoke exclusively to Cointelegraph regarding Milei’s position on cryptocurrency.

Contrary to popular perception, González noted that Milei is not explicitly a Bitcoin advocate, as the president has mentioned on various occasions that he is not a specialist in cryptocurrencies and that they will not be the primary focus of his government.

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