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Argentina scraps crypto regularization in Milei’s new economic reform

The asset regularization clause has been removed from the Law of Bases and Starting Points for the Freedom of Argentines.



Source: Cointelegraph

The option to legalize crypto holdings, even if they’re overdue on tax declarations, has been dropped from the ambitious package of reforms that the new government of the self-proclaimed libertarian Argentine President Javier Milei introduced in the country’s parliament. 

The Argentine tech-focused outlet iProUP reported on Jan.27 that the clause about asset regularization suggesting a single-time tax on various types of previously undeclared assets has been cut out of the Law of Bases and Starting Points for the Freedom of Argentines — an omnibus bill aiming to kickstart Milei’s policy agenda.

This part of the bill proposed a simple tax of 5% on all assets, declared by the end of March 2024, 10% from April until the end of June 2024 and 15% from July until the end of September.

The regularization scheme included cryptocurrencies and other assets such as real estate, personal property, stocks and securities.

According to the Minister of the Interior, Guillermo Francos, the decision to eliminate the asset regularization from the bill was based on the fact that “it delayed the treatment” of the initiative in parliament.

Previously, in December 2023, Argentine Minister of Foreign Affairs, International Trade and Worship Diana Mondino claimed the government would allow the use of Bitcoin in the country through a decree, which has yet to happen. However, the “Bases for the Reconstruction of the Argentine Economy” decree, passed on Dec. 20, 2023, included provisions that debtors could pay in currencies “not recognized as legal tender” in Argentina.

Milei won Argentina’s 2023 presidential election amid persistent and rising inflation across the country. Milei once referred to Bitcoin BTC $42,916 as a movement toward “the return of money to its original creator, the private sector.” Since taking office in December 2023, he has not publicly spoken about digital assets.

In January, the new Argentine president promised not to legally oppose provincial authorities’ creation of local currencies. The statement came in response to the Governor of La Rioja province, Ricardo Quintela, who announced a separate currency for the province after Milei devalued the Argentine peso by 50% after taking office.

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