- Argentina’s new government under President Javier Milei has removed the clause for crypto asset regularization from its economic reform bill.
- The original proposal included a one-time tax on various undeclared assets, including cryptocurrencies, but was scrapped to expedite parliamentary proceedings.
Crypto Regularization Clause Removed in Argentina’s New Economic Blueprint
In a significant shift in Argentina’s approach to digital assets, the government of President Javier Milei has decided to exclude cryptocurrency regularization from its comprehensive economic reform package. This decision marks a pivotal moment in the country’s evolving stance on cryptocurrency regulation.
A Strategic Omission for Swift Legislative Movement
Initially, the Law of Bases and Starting Points for the Freedom of Argentines, an omnibus bill designed to launch Milei’s policy initiatives, included a proposal for asset regularization. This clause suggested a straightforward tax framework for various previously undeclared assets, encompassing cryptocurrencies, real estate, personal property, stocks, and securities. The tax rates were set to escalate progressively from 5% to 15% based on declaration timelines extending from March to September 2024.
However, according to Guillermo Francos, Argentina’s Minister of the Interior, the asset regularization component was omitted to avoid delays in the legislative process. This move indicates a strategic pivot towards more immediate economic concerns, sidelining the integration of cryptocurrencies into formal financial frameworks for the time being.
Milei’s Stance on Bitcoin and Digital Assets
President Javier Milei, a self-proclaimed libertarian, has been vocal about his views on Bitcoin and the role of private sector-led monetary systems. Despite his past statements heralding Bitcoin as a step towards
“the return of money to its original creator, the private sector,”
his administration has not yet actively pursued policies directly involving digital assets since taking office in December 2023.
In contrast, previous announcements by Argentine officials, such as Foreign Affairs Minister Diana Mondino’s December 2023 statement regarding Bitcoin use, have not materialized into concrete policies or decrees. Additionally, the government’s recent decree allowing debt repayment in non-legal tender currencies hinted at a potential opening for digital assets, but this has not been explicitly acted upon.
Looking Ahead: Navigating Economic Challenges
As President Milei navigates Argentina’s persistent inflation and economic challenges, his government’s stance on cryptocurrencies remains a subject of speculation and interest. While the latest reform package sidesteps direct engagement with digital assets, the future of crypto regulation in Argentina continues to be an area of potential development and intrigue, especially in light of Milei’s past positive remarks about Bitcoin and his commitment to not oppose the creation of local currencies by provincial authorities.