Argentina’s Push for Crypto Legalization Faces Legislative Hurdles

Argentina, led by President Javier Milei, seeks to streamline cryptocurrency legalization, granting Milei expanded powers to bypass traditional routes.

The proposed legislation, titled the “Law of Bases and Starting Points for the Freedom of Argentines,” introduces sweeping reforms aimed at legalizing cryptocurrency holdings. This initiative, spearheaded by Milei, a staunch supporter of Bitcoin, aims to provide taxpayers with an option to legalize their crypto assets without extensive documentation.

Minister of the Interior, Guillermo Francos, emphasized the proposal’s focus on economic freedom, underscoring the urgency of its implementation. However, recent reports suggest a significant revision, with the removal of the asset regularization clause.

Initially, the bill proposed a progressive tax rate on undeclared assets, including cryptocurrencies. However, this clause, suggesting a simple tax ranging from 5% to 15%, has been removed, leading to uncertainties regarding the bill’s future.

Despite the government’s intent to allow the use of Bitcoin, recent legislative developments paint a complex picture. President Milei, who assumed office amid persistent inflation, has refrained from public statements on digital assets.

In Argentina, holding cryptocurrencies does not trigger immediate tax obligations. Still, gains from selling them are subject to taxation, as classified by the Argentine Tax watchdog, AFIP.