- A new bill introduced in Argentina aims to streamline cryptocurrency legalization by allowing residents to declare digital assets and pay a reasonable fee through September 2024.
- The asset regularization scheme is part of President Javier Milei’s broader free-market reforms to reduce government intervention in the economy.
- While not an explicit advocate, Milei views cryptocurrencies like Bitcoin as an alternative to central banking, aligning with his libertarian principles.
The newly elected libertarian government in Argentina has proposed a bill to streamline the process for residents to declare their cryptocurrency holdings. This will enable individuals who have not accurately reported digital assets for tax purposes to come forward, pay a reasonable fee, and formalize their status.
Bill Introduced to Congress
On December 27th, President Javier Milei‘s administration introduced the ‘Law of Bases and Starting Points for the Freedom of Argentines’ to Congress. This sweeping legislative package aims to institute reforms across multiple sectors, including a notable provision to address cryptocurrencies.
Asset Regularization Scheme for Cryptocurrencies
A key aspect of the bill is introducing an asset regularization scheme for cryptocurrency holdings. This would allow taxpayers to declare their digital assets up until September 2024 without requiring additional proof of origin. The tax rate would start at 5% and gradually increase to encourage early declaration.
Supporting Broader Economic Reforms
The cryptocurrency measures align with President Milei’s larger mission to enact sweeping free-market reforms. Since taking office on December 10th, his administration has pushed for dissolving the central bank and reducing government intervention in the economy. The asset regularization scheme reflects a commitment to creating a more transparent cryptocurrency sector.
Outlook on Digital Assets
While not an explicit Bitcoin advocate, President Milei’s principles resonate with aspects of the cryptocurrency ethos. He envisions technology progress enabling a freer society based on individual contracts. Milei has suggested Bitcoin could offer an alternative to central banking. However, cryptocurrencies are not expected to be the main focus of his economic agenda.