There is no longer a provision in the Law of Bases and Starting Points for the Freedom of Argentines regarding the regularization of assets.
As part of their ambitious reform package, the new administration of self-proclaimed libertarian Argentine President Javier Milei withdrew the possibility of legitimizing crypto holdings, regardless of whether they were late on tax disclosures.
In an effort to kickstart Milei’s policy agenda, the Law of Bases and Starting Points for the Freedom of Argentines—an omnibus bill—was reportedly amended on January 27 to remove a provision proposing a single-time tax on different kinds of undeclared assets.
It was suggested in this section of the law that all assets would be subject to a flat tax of 5% by March 2024, 10% from April to June 2024, and 15% from July to September 2024.
Cryptocurrencies and other assets, including real estate, personal possessions, equities, and securities, were all part of the regularization process.
The decision to remove the asset regularization from the measure was made because “it delayed the treatment” of the proposal in parliament, according to Guillermo Francos, the Minister of the Interior.
No official decree authorizing Bitcoin usage in Argentina has been issued since December 2023, when Argentine Minister of Foreign Affairs, International Trade, and Worship Diana Mondino made the assertion. Debtors were allowed to pay using currencies that were not recognized as legal cash in Argentina, according to the “Bases for the Reconstruction of the Argentine Economy” regulation that was enacted on December 20, 2023.
Inflation in Argentina remained high and continued to rise until Milei was elected president in 2023. “The return of money to its original creator, the private sector,” is what Milei previously said about Bitcoin. He has refrained from discussing digital assets in public since assuming office in December 2023.
The next president of Argentina pledged in January not to formally challenge the establishment of local currencies by regional administrations. After Milei depreciated the Argentine peso by 50% after entering office, Ricardo Quintela, the governor of La Rioja province, declared the creation of a new currency for the region. This declaration was a reaction to Quintela’s announcement.
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