Crypto assets of Argentine Citizens will become available

01/11/2023

1 minute read

2023.01.11 01:09

By Tiffany Smith

Budrigannews.com – A bill has been drafted by Argentina’s Ministry of Economy, the country’s economic policy manager, to provide discounted tax rates to encourage Argentines to declare their cryptocurrency holdings.

According to a Jan. 6 report by a local outlet Errepar, the “Externalization of Argentine Savings” draft law was introduced by economy minister Sergio Massa to combat money laundering.

Cryptocurrency holders would be required to submit an affidavit, which is a sworn statement telling the government where their holdings are.

In order to encourage citizens to declare their holdings, the bill proposes tax incentives.

Capital gains from crypto holdings will only be subject to a 2.5% tax on voluntary declarations made within 90 days of the law’s implementation. Every 90 days, this tax rate will gradually rise until it reaches the standard capital gains tax rate of 15%.

At the G20 summit in Bali in November 2022, Sergio Massa (right) is shown with Argentine President Alberto Fernández (middle). Image: Casa Rosada The bill also aims to get Argentines to declare holdings of other financial assets that are subject to capital gains, like shares, stocks, real estate, furniture, and fiat currency.

Domestic and foreign holdings would be required to be deposited in Argentina-approved or foreign banks regulated by that country’s central bank or securities commission under the proposed law.

During the following legislative session, the bill will be presented and discussed.

Argentina ranked 13th overall in the 2022 Global Adoption Index produced by blockchain data firm Chainalysis. Emerging markets are a hotbed of crypto adoption.

Due to the country’s high inflation and its ease of use for cross-border transactions, Argentines have been drawn to cryptocurrency. According to Statista data, Argentina’s inflation rate almost reached 72.4% in 2022.