Argentina’s President, Javier Miley, has unveiled a bold proposal to implement a favourable tax regime for crypto assets, marking a significant stride in the nation’s approach to digital currencies.
In a bill unveiled on December 27, President Miley detailed an extensive plan to regulate crypto assets, offering transparency and incentives for both individuals and businesses. Notably, these proposed regulations are intended to apply to a broad spectrum of assets, described as “cryptoassets and other similar goods, regardless of who issued them, who owns them, and where they are deposited or stored.”
The proposed legislation seeks to legitimize digital currencies to promote responsible usage within the nation. It outlines that digital assets declared before March 31 will incur a modest 5% tax rate. This rate is set to increase to 10% from April to the end of June 2024 and further to 15% from July to September of the same year. Notably, this move has been interpreted as part of a broader economic and political reform agenda aimed at reducing expenditures, opening up industries, and bolstering economic development.
Beyond the realm of crypto regulations, the comprehensive proposal encompasses various economic sectors. President Miley advocates for the repeal of laws governing housing rentals and the supply of goods to stores. Additionally, he proposes lifting export restrictions and dismantling the price control unit of the Ministry of Economy. However, while this all-inclusive strategy aims to streamline regulations, it faces criticism from opposition representatives questioning the legality of repealing multiple regulations with a single decree.
That said, the controversial President’s endorsement of Bitcoin has been evident. Just days ago, his administration nodded at official contracts being settled in Bitcoin. Prior to his election victory mid-last month, Milei passionately articulated his perspective on Bitcoin, viewing it as a vehicle for reinstating financial control within the private sector. President Milei is renowned for his outspoken critiques of the country’s central bank, branding it as a scam and denouncing it as “a mechanism through which politicians deceive the public with an inflation tax.”
That said, despite expressing favour for cryptocurrencies, Milei has not yet suggested the adoption of bitcoin as legal tender in Argentina, akin to El Salvador’s approach. Instead, he has advocated for the dollarization of the Argentine economy as a strategy to address the nation’s pervasive inflation issue.