Javier Milei, the president, has assured that this bill, once implemented, would allow citizens to own and trade crypto-assets, regardless of their origin or location.
Those Argentine citizens who voluntarily report their crypto assets by March 31 will be subject to a 5% tax rate. However, if approved by parliament, this tax level will be increased to 15% by November 30. Failure to report cryptocurrency assets could lead to higher tax rates and additional penalties.
Legalizing digital currencies is just one part of the economic reforms proposed by the new president of Argentina.
In addition, the Minister of Foreign Affairs, International Trade and Culture of Argentina, Diana Mondino, has stated that the presidential decree “On the fundamentals of economic reconstruction of Argentina” would allow the use of bitcoins and other cryptocurrencies in government contracts and certain payments, provided certain conditions are met. For instance, debtors might be allowed to pay taxes in cryptocurrency.