Undeclared Crypto Assets in Argentina

The newly established government in Argentina, led by self-proclaimed Libertarian Javier Milei, has expressed its intent to simplify the legalization process for overdue crypto holdings, even for those with pending tax declarations.

Undeclared Crypto Assets in Argentina

Introduced to the Argentine Congress on December 27, the Law of Bases and Starting Points for the Freedom of Argentines is a comprehensive 351-page bill encompassing reforms in tax, labor, criminal, energy, and electoral domains, aligning with Milei’s controversial reformist agenda.

In the context of an ‘asset regularization scheme,’ the bill outlines the types of assets eligible for legalization without requiring ‘additional documentation’ on their origin. Under this scheme, taxpayers are subject to a flat tax on assets: 5% if holdings are declared by the end of March 2024, 10% from April to the end of June 2024, and 15% from July to the end of September.

In a related development in December, Diana Mondino, the Minister of Foreign Affairs, International Trade, and Worship of Argentina, suggested that a decree focused on economic reform and deregulation could permit the use of Bitcoin (BTC) and other cryptocurrencies in the country under specific conditions.

Although the “Bases for the Reconstruction of the Argentine Economy” decree passed on December 20 did not explicitly mention crypto, it included provisions allowing debtors to settle payments in currencies not recognized as legal tender in Argentina.