Declaring domestic and foreign crypto holdings could win Argentines a favorable tax rate and legalize the use of those assets in the country, regardless of their origin or where they are held, under controversial draft bill by newly elected President Javier Milei.
The asset regularization program is part of proposed wide-ranging economic and political reforms. Crypto markets broadly welcomed Milei's November presidential win after he praised bitcoin (BTC) during his campaign. His omnibus bill though is already facing heavy backlash and protests in the country shortly after its introduction on Tuesday.
Cryptocurrencies are among assets ranging from cash to property captured under the proposed regularization regime, with reduced penalties for early declaration. For instance, citizens who declare their crypto holdings before March 31 will be subject to a tax rate of only 5%, a level that increases to as high as 15% by Nov. 30.
The concessions apply to "cryptocurrencies, crypto assets and other similar goods, regardless of who has been their issuer, who is their owner or where they were deposited, guarded or stored," according to the draft bill.
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Argentina's decades-long economic woes, from sky-high inflation to currency instability, have previously prompted the country to target billions of dollars in cash or assets held abroad by citizens through amnesty programs.
