President Milei’s pro-crypto stance is reflected in removing mandatory crypto declaration and taxation.
Holding crypto remains untaxed, but capital gains above a threshold trigger taxation.
A controversial shift allows anonymous crypto holdings, raising questions about transparency.
The recently inaugurated government of Argentina, under the leadership of President Javier Milei, who is recognized for his strong liberal stance and support for Bitcoin, has introduced a comprehensive bill to the legislative body translated as “Law of Foundations and Initial Measures for Argentinian Liberty”.
Milei is renowned for his advocacy for dismantling the nation’s central bank and for introducing a range of bold policy propositions that have garnered significant interest from the cryptocurrency community.
Minister Advances Bill to Ease Tax Regulations, Excluding Crypto
Pushed forward by Interior Minister Guillermo Francis, the proposed legislation aims to alleviate tax burdens across various sectors in Argentina. Notably, it omits any provisions regarding cryptocurrencies, effectively eliminating their tax declaration.
Previously, owners of digital assets had the privilege of declaring their holdings, benefiting from a favorable fixed tax rate: no tax for holdings below $100,000 and a 15% tax for those exceeding this amount. The removal of this benefit has ignited debate and dissatisfaction.
Critics argue that this move contradicts President Javier Milei’s known support for cryptocurrencies, labeling the tax policy as unfairly biased. In response, Minister Guillermo Francis points to a lack of consensus among political factions as the reason behind this controversial decision.
A Bold Legislative Move Shaping the Future of Crypto
Should the proposed legislation pass, holding cryptocurrencies in Argentina will not incur taxes, as detailed by accountant Marcos Zocaro. Tax obligations will arise only from capital gains generated through sales, and that too below a specific threshold.
“In the case of an individual, for the simple act of buying what the law calls digital currency, no tax is paid. What is taxed on profits, is the profit made from the sale and there is also a minimum below which no tax is to be paid“.
Moreover, international transfers of cryptocurrencies will be subject to a tax rate ranging from 5 to 15%, a strategy designed to attract foreign cryptocurrency investments, as per industry specialists.
Let's take a closer look at the current situation in Argentina and its embrace of cryptocurrencies.
Do you believe Argentina would benefit from regulated, asset-backed crypto alternatives? Feel free to share your opinions in the comments! pic.twitter.com/QuWYWgE8gC
In a significant policy shift, the government maintains its robust endorsement of the cryptocurrency sector. Notably, the bill proposes a provision for the declaration of cryptocurrencies without necessitating evidence of their origin.
Reiterating this supportive stance, Diana Mondino, the Minister of Foreign Affairs, expressed via X that cryptocurrencies will continue to play a role in Argentina’s financial landscape, albeit within certain frameworks.
Reflecting President Javier Milei’s ambition to position Argentina as a crypto-friendly nation, this bill, despite its complexities, marks a pivotal chapter. Its progress is poised to be a focal point in the nation’s legislative discussions in the weeks ahead.
Could Cryptocurrencies Rejuvenate Argentina’s Economy?
In Argentina, cryptocurrencies offer a potential bulwark against inflation for the workforce, helping to safeguard their earnings. Employers, too, stand to gain, with opportunities for streamlined international transactions and reduced reliance on the nation’s unstable banking sector.
As we endure a slow movement in Western countries, crypto is running at an ATH in the emerging markets 📈
Argentina: A G20 country with a long history of inflation & currency depreciation is celebrating an ATH in BTC price 💰
Yet, the journey towards broad cryptocurrency adoption is fraught with hurdles. It requires domestic companies to embrace and advocate for cryptocurrencies as legitimate payment options. Concurrently, the government must foster an ecosystem conducive to this digital shift.
With the right policies and acceptance, cryptocurrencies could indeed become pivotal in fortifying the financial well-being of both the Argentine workforce and the broader economic framework.
Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear.
Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3.
An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.