The Milei administration in Argentina is contemplating a bill to streamline the procedure for legalizing crypto assets holdings, even for taxpayers with outstanding liabilities.
The proposed law would enable an asset regularization scheme, allowing citizens to declare their cryptocurrency assets subject to a progressive tax rate, without extensive paperwork demonstrating the origins of the assets.
Citizens legalizing assets by March 2024 would only pay a 5% tax, while those disclosing between April to June 2024 would pay a 10% tax. The last date for a 15% tax rate declaration would be September 2024.
The move signals a shift from conventional tax policies to facilitate the integration of cryptocurrencies into Argentina’s financial system.
While President Milei has vocally supported Bitcoin and decentralization after assuming office, concrete regulatory changes have been lacking. The new bill marks a major step towards crypto-friendly reforms, although passage would depend on parliamentary consent.
Currently, Argentina treats cryptocurrencies as financial assets liable to taxes based on year-end market value. The proposed asset regularization scheme simplifies tax obligations while encouraging citizens to disclose crypto holdings within the legal system.
