In a surprising turn of events, the Argentine government, led by the self-proclaimed libertarian President Javier Milei, has decided to exclude the option of legalizing cryptocurrency holdings, even for individuals overdue on tax declarations.
The decision was made as part of the comprehensive package of reforms presented in the Law of Bases and Starting Points for the Freedom of Argentines, an omnibus bill designed to implement Milei’s ambitious policy agenda.
The Argentine tech-focused outlet iProUP brought attention to this development on January 27, revealing that a crucial clause related to asset regularization, which proposed a one-time tax on various types of previously undeclared assets, has been removed from the legislation.
The eliminated provision of the bill outlined a progressive tax structure, starting with a 5% tax on all assets declared by the end of March 2024. This rate was set to increase to 10% for declarations made from April to the end of June 2024 and further rise to 15% for assets declared from July to the end of September 2024.
The exclusion of the cryptocurrency legalization option is a notable departure from the government’s initial stance and has sparked debates among experts and stakeholders. The proposal to allow individuals with overdue tax declarations to legalize their crypto holdings raised eyebrows when it was first introduced, as it represented a unique approach to addressing the issue of undeclared assets.
President Javier Milei, known for his libertarian views, has been advocating for greater economic freedom and individual liberties. The removal of the crypto regularization clause suggests a reevaluation of the government’s position, possibly influenced by concerns related to revenue collection, regulatory challenges, or public opinion.
Critics argue that the decision may hinder the growth of the crypto sector in Argentina, which has shown signs of increasing adoption in recent years. Proponents of the initial proposal believed that offering a pathway to legalize crypto holdings could have encouraged tax compliance and fostered a more transparent financial system.
As the government’s reform package undergoes further scrutiny in parliament, the fate of cryptocurrency regulations in Argentina remains uncertain. The exclusion of this clause raises questions about the government’s approach to balancing economic freedom, tax compliance, and the promotion of emerging technologies. Stakeholders will be closely monitoring any future developments that may impact the crypto landscape in Argentina.