Argentina's newly established government, led by self-proclaimed libertarian Javier Milei, has proposed plans to facilitate the legalization of cryptocurrency holdings, even for individuals who have fallen behind in filing their tax returns.
The Argentine Congress received the "Law on the Foundations and Starting Points of Argentine Freedom" on December 27, unveiling a comprehensive 351-page bill encompassing reforms across various sectors, including taxation, labor, criminal justice, energy, and electoral matters. This ambitious reform agenda marks Milei's controversial entry into governance.
Within this extensive bill, cryptocurrencies play a role in tax payment procedures. Notably, the legislation introduces an "Asset Regularization Scheme" segment, outlining the assets that taxpayers can regularize without needing to provide additional documentation regarding their origins. Under this program, taxpayers are required to pay a unified asset tax, starting at 5% if asset holdings are declared before the end of March 2024. The rates gradually increase to 10% between April and June 2024 and 15% from July to September 2024 for assets declared in these periods.
Earlier in December, Argentina's Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, highlighted a decree focused on economic reform and deregulation. Although not explicitly mentioning cryptocurrencies, the decree permits debtors to use currencies that Argentina doesn't recognize as legal tender for payments.
Despite these initiatives, Milei, who assumed leadership amid the country's economic challenges and inflationary pressures, has not made public statements specifically addressing digital assets. Previously, he referred to Bitcoin as a means to "return money to its original creators – the private sector." His administration's stance on digital currencies remains less clear since assuming office.
