Argentina Abandons Crypto Regulation in Milei’s Economic Reform

The new government of Javier Milei in Argentina has removed the option to legalize crypto holdings from its ambitious reformist package. The clause about “asset regularization,” which proposed a one-time tax on undeclared assets, has been cut from the Law of Bases and Starting Points for the Freedom of Argentines. The bill proposed a 5% tax on all assets declared by March 2024, 10% from April to June 2024, and 15% from July to September. The scheme included cryptocurrencies, real estate, personal property, stocks, and securities. The decision to remove this clause was based on the delay it caused in the treatment of the bill in parliament.

In December, the government had announced that it would allow the use of Bitcoin in the country by a decree, but it did not follow through with this. A decree passed on December 20 allowed debtors to pay in currencies “not recognized as legal tender” in Argentina. Javier Milei became president amidst high inflation in the country. He has previously praised Bitcoin as a movement towards returning money to the private sector, but since taking office, he has not publicly mentioned digital assets. In January, Milei promised not to oppose provincial authorities’ creation of local currencies, in response to a governor announcing a separate currency for their province after Milei devalued the Argentine peso by 50% upon taking office.