Bill In Argentina To Encourage Citizens To Reveal Their Crypto Holdings

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Argentina’s Ministry of Economy, the country’s economic policy maker, has drafted a bill to encourage Argentines to report their cryptocurrency holdings with the incentive of reduced tax rates.

Aimed at combating money laundering, Argentina’s savings outsourcing bill was introduced by Economy Minister Sergio Massa according to a January 6 report by local media Errepar.

The bill would require crypto holders to produce an affidavit, a sworn statement identifying the whereabouts of their holdings to the government.

The bill proposes tax incentives to encourage citizens to declare their assets.

Those who voluntarily report their holdings within 90 days of the law taking effect will only pay a 2.5% capital gains tax on their crypto holdings. This tax rate will gradually increase every 90 days until it reaches 15%, the country’s standard capital gains tax rate.

Sergio Massa (right) pictured with Argentinian President Alberto Fernndez (middle) at the G20 summit in Bali in November 2022. Image: Casa Rosada

The bill also aims to encourage Argentines to report holdings of other financial assets subject to capital gains such as fiat currency, stocks, shares, real estate and even furniture.

The proposed law would require domestic and foreign assets to be deposited in licensed banks either in Argentina or in foreign banks regulated by that jurisdiction’s central bank or securities commission.

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The bill will be tabled and debated during the next parliamentary session.

Related: Argentine Province Will Issue US Dollar Pegged Stablecoin

Emerging markets are a hotbed of crypto adoption, with Argentina ranked 13th overall in blockchain data firm Chainalysis’ 2022 Global Adoption Index.

Argentinians were drawn to crypto due to the high inflation in the country and its ease of use for cross-border transactions. Argentina’s inflation rate almost reached 72.4% in 2022 according to data from Statista.

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