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Javier Milei, Argentina’s newly elected president, has proposed a draft bill that will see all citizens declare their crypto holdings.
The new reforms are part of an omnibus bill president Milei sent to Congress. It contains far-reaching proposals aimed at changes to Argentina’s tax system, public debt management and electoral law. According to local reports, thousands of Argentines have demonstrated against the controversial bill.
Tax amnesties for declared assets
As relates to the tax system and crypto, the draft outlines the obligation for crypto holders to report both their domestic and foreign held cryptocurrencies and crypto assets. The bill highlights tax amnesties for citizens who register undeclared, which includes stocks, crypto and cash.
Citizens will have a favourable tax rate applied to the declared crypto holdings, CoinDesk reported. For instance, declaring holdings before March 31, 2024 will only have a 5% tax rate applied. After this date, the penalty will increase up to 15% by November 30, 2024.
Other than citizens getting a favourable tax rate, the bill seeks to legalise cryptocurrency use in the country. This comes as Milei looks to stabilise the country after economic woes spanning decades, with the Argentine peso greatly devalued. However, as noted above, there have been huge demonstrations against the package of reforms.
Milei’s election was widely hailed across the crypto industry, with observers pointing to his pro-Bitcoin stance during his campaigns. Indeed, some of the recent developments aligned with this outlook.
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