Argentina's New Government Eases Path for Cryptocurrency Legalization Amid Economic Reforms
Summary:
Argentina's new government, led by Javier Milei, plans to simplify the legalisation process for cryptocurrency assets, even if taxes are overdue. A new bill proposes numerous reforms, including the ability for taxpayers to declare assets without extra documentation about their origin under an "asset regularisation scheme." Earlier in December, a decree was suggested that might allow bitcoin and other cryptocurrencies usage under specific conditions. President Milei, who was elected during a period of significant inflation, has yet to comment publicly on digital assets since taking office.
Argentina's recently established government, led by self-proclaimed libertarian Javier Milei, has announced plans to simplify the process of legalizing cryptocurrency assets, even for those with overdue tax filings. The foundational law for Argentine citizens' liberty was tabled in parliament on December 27. This comprehensive 351-page document details a myriad of reforms across various sectors, including tax, employment, criminal, energy and election procedures, initiating Milei's contentious reformative plan. The bill briefly mentions cryptocurrencies in the context of tax payment processes. Under a designated section titled "asset regularization scheme," it outlines the kind of assets taxpayers can declare without needing to provide extra paperwork about their source. According to the terms of this regularization scheme, taxpayers need only pay a singular asset tax: 5% if they declare their holdings before March 2024, 10% if they declare between April and June 2024, and 15% if they declare between July and September of the same year. Earlier in December, Diana Mondino, minister of foreign affairs, international trade, and worship for Argentina, suggested a decree aiming for economic reform and deregulation would permit the use of Bitcoin and other cryptocurrencies under certain conditions. However, the decree, dubbed the "Bases for the Reconstruction of the Argentine Economy" and passed on December 20, avoided explicitly mentioning cryptocurrencies, but did stipulate that debt repayments could be made in currencies not officially recognized in Argentina. The election of Javier Milei as president occurred against the backdrop of widespread inflation within the country. He once remarked that Bitcoin represents a shift towards the "re-emergence of money's rightful owner, the private sector," but has yet to make further public comments on digital assets since assuming office. Magazine feature: Top 10 in-depth crypto reads of 2023.
Published At
12/28/2023 1:29:16 PM
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