Argentina embraces crypto regularization in new economic reforms

The option to legalize crypto holdings, despite overdue tax returns, has been dropped from the reform package that self-proclaimed Argentine President Javier Millay's new government has introduced in the country's parliament.

Argentina's tech-focused iProUP reported on January 27 that the article on property regularization, which refers to a one-time tax on previously unknown types of property, was cut from the Basic and Origin Law of Argentine Independence – an omnibus law aimed at launching Melay's policy agenda.

This part of the bill proposed a simple levy of 5% on all properties by the end of March 2024, 10% from April to the end of June 2024 and 15% from the end of July to the end of September.

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The normalization plan includes cryptocurrencies and other assets such as real estate, personal property, stocks, and securities.

According to Interior Minister Guillermo Francos, the decision to remove the normalization of property from the law is based on the fact that the initiative in Parliament “delayed the treatment”.

Previously, in December 2023, Argentina's Minister of Foreign Affairs, International Trade and Religion, Diana Mondino, said that the government would allow the use of Bitcoin in the country by decree, which has yet to happen. However, the decree passed on December 20, 2023 “On the basis of the reconstruction of the Argentine economy” includes provisions that borrowers can pay in currencies “not recognized as legal tender” in Argentina.

Miley won Argentina's 2023 presidential election amid the country's persistent and rising inflation. Miley once referred to Bitcoin (BTC) as a movement to “bring money back to the private sector of its original creator.” He has not spoken publicly about digital assets since taking office in December 2023.

In January, Argentina's new president promised that he would not legally challenge regional authorities to create local currencies. The statement comes in response to La Rioja state governor Ricardo Quintella's announcement of a separate currency for the state after Mayel devalued the Argentine peso by 50 percent after taking office.

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