Argentina Scraps Plan to Legalize Cryptos Amid Overdue Tax Filings from Reform Package
Summary:
Argentina's government has removed a proposed law that would allow cryptocurrency holders overdue on their tax filings to legalize their assets. This was initially part of President Javier Milei's radical reform package. Despite earlier announcement about legalizing Bitcoin, the president has held back on giving public comments on digital currencies. The Argentine president assured of not legally obstructing provincial governments' if they decided to create local currencies; this was in response to the devaluation of Argentina's peso after he assumed office.
The Argentine government, under the helm of self-declared libertarian President Javier Milei, has scrapped the plan to legalize cryptos even when tax filings are overdue, from its radical reform package. According to a January 27 report by the local tech edition, iProUP, the regulation that advocated for a one-time tax on various categories of previously undisclosed assets, has been removed from the Law of Bases and Starting Points for the Freedom of Argentines. The proposed law is an omnibus bill intended to ignite Milei's policy framework. This section of the bill had proposed a flat tax of 5% on all disclosed assets until the end of March 2024, ramping up to 10% from April until the end of June 2024, and 15% from July till the end of September.
The regulation scheme counted in cryptocurrencies along with other assets such as real estate, personal properties, stocks, and bonds. Interior Minister Guillermo Francos has said that the removal of the asset regularization was needed to avoid delaying legislative discussions on the bill.
In December, Argentine's foreign affairs minister, Diana Mondino, stated that Bitcoin usage would be legalized by decree, which did not transpire. However, a decree titled "Bases for the Reconstruction of the Argentine Economy", passed on December 20, allowed debtors to use currencies not legally recognized in Argentina for payments.
Milei, who has previously described Bitcoin as marking a swing back to the private sector, came to power during a severe inflation crisis in the country. Despite this, he has held back from making public comments about digital currencies since becoming president.
In January, the Argentine president assured that he would not legally obstruct provincial governments from creating local currencies. This was in response to the announcement from La Rioja's governor, Ricardo Quintela, who said his province will have its own currency after Milei devalued the Argentine peso by half upon assuming office.
Published At
1/31/2024 2:26:00 PM
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