Crypto Crackdown Looms in Argentina As Milei's Bill Demands Full Disclosure

Argentina's newly elected President Javier Milei has introduced a draft bill that could significantly impact cryptocurrency holders in the country.

This legislation, part of a broader economic and political reform package, aims to incentivize Argentines to declare both their domestic and foreign cryptocurrency assets.

In return, they would benefit from a favorable tax rate and the legalization of these assets, irrespective of their origin or storage location, Coindesk reported.

President Milei, who gained popularity in the crypto community for his positive stance on Bitcoin BTC/USD during his campaign, has seen his omnibus bill spark considerable controversy and protests since its announcement on Tuesday. The bill proposes a unique asset regularization program that encompasses various assets, including cryptocurrencies.

Under the proposed regime, Argentines who declare their cryptocurrency holdings by March 31 would benefit from a reduced tax rate of 5%.

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However, this rate is set to increase significantly to 15% after Nov. 30.

The draft bill states that these 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."

This move by Milei is seen as part of Argentina's ongoing efforts to address its longstanding economic challenges, which include severe inflation and currency instability.

The country has previously implemented amnesty programs targeting billions of dollars in cash or assets held abroad by its citizens.

The current proposal aims to bring a similar approach to the burgeoning world of digital assets.

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