Buenos Aires, Argentina – Thursday, December 28, 2023- In a surprise move, Argentine President Javier Milei proposed including a cryptocurrency declaration in the country’s ongoing reform bill in December last week. 1President-Elect Milei’s draft bill suggests declaring both domestic and foreign Crypto holdings could lead to a favorable tax rate.
The regularization initiative forms a component of more extensive economic and political restructuring measures.
The move aims to legalize the use of these assets within the country, regardless of their origin or location.
Although Milei received a positive response from crypto markets after expressing support for Bitcoin during his campaign, his omnibus bill has sparked significant backlash and protests in the country since its introduction in December last week.
The regularization regime covers various assets, including cryptocurrencies, alongside cash and property. The draft bill outlines reduced penalties for early declaration, with citizens who disclose their crypto holdings before March 31 facing a lower tax rate of only 5%. This rate gradually increases, reaching up to 15% by November 30.
The proposed measure would require Argentine citizens to declare their cryptocurrency holdings alongside other assets for tax purposes.
Proponents argue that this would bring crypto into the formal financial system, boosting transparency and potentially generating new revenue for the cash-strapped nation.
They also highlight the potential to crack down on illicit activities often associated with cryptocurrencies.
However, critics warn that the move could infringe on individual privacy and raise difficulties in accurately tracking and taxing assets stored in decentralized networks.
Some also question the timing of the proposal, coinciding with Argentina’s international debt restructuring talks and raising speculation about potential motivations.
While the practical ramifications remain unclear and public opinion is divided.
- Crypto Declaration: https://crypto.news/argentinan-president-advocates-for-cryptocurrency-declaration-in-reform-bill/[↩]
