Milei's Proposed Bill: Argentina's Crypto Incentives Unveiled

• New Draft Bill May Regularize Crypto Holdings in Argentina
• Crypto Community's Response to Milei's Win
• Scope of the Proposed Regularization Regime
• The Range of Crypto Assets Included in the Concessions
• Argentina's History of Asset Regularization

New Draft Bill May Regularize Crypto Holdings in Argentina

A potentially transformative draft bill has been put forward by the recently elected President, Javier Milei, which could see domestic and international crypto holdings of Argentinian citizens taxed at a favorable rate. Furthermore, the bill could also authorize the use of these assets in the country, regardless of their origin or location of storage. This process of asset regularization is part of a broader proposal for economic and political reforms.

Crypto Community's Response to Milei's Win

The crypto markets have generally responded positively to Milei's November electoral victory, mainly due to his vocal support for Bitcoin$42,260 -0.64% (BTC) during his campaign. However, his comprehensive bill is facing significant opposition and public protests shortly after its introduction on Tuesday.

Scope of the Proposed Regularization Regime

Cryptocurrencies are included in a wide array of assets, ranging from cash to property, which fall under the proposed regularization regime. This regime encourages early declaration of assets by offering reduced penalties. For instance, a tax rate of only 5% will be applied to citizens who declare their crypto holdings before March 31, which could increase to 15% by November 30.

The Range of Crypto Assets Included in the Concessions

The concessions introduced in the draft bill apply to cryptocurrencies, crypto assets and other similar goods, irrespective of the issuer, the owner, or the location of deposition, guarding or storage, the draft bill clearly elaborates.

Argentina's History of Asset Regularization

This is not the first time Argentina has targeted cash or assets held abroad by its citizens. The country, plagued by decades of economic troubles including severe inflation and currency instability, has previously aimed to bring back billions of dollars in cash or assets through amnesty programs.

Edited by Jonathan Stoker