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The government of Argentina has proposed a new bill that encourages its citizens to disclose their cryptocurrency holdings with the promise of discounted tax rates.
Argentines may soon be motivated to reveal their crypto holdings through tax incentives. Argentina’s Ministry of Economy – the economic policy manager of the country - has introduced a new crypto bill aimed at addressing money laundering and encourages its citizens to reveal their crypto holdings by incentivizing them with lowered tax rates according to local news reports. The “Externalization of Argentine Savings” draft law is aimed at fighting money laundering and was introduced by economy minister Sergio Massa.
The bill includes a requirement that holders of cryptocurrencies produce an affidavit identifying the whereabouts of their holdings to the Argentine government. Those who declare their holdings would benefit from tax breaks.
According to the draft bill, those who voluntarily declare their holdings within 90 days of the law coming into effect would only be required to a 2.5% tax on capital gains of their holdings. The rate increases incrementally every 90 days until reaching 15%, which is Argentina’s standard capital gains tax rate. According to reports by Cointelegraph, the draft bill would force domestic and foreign holdings to be deposited into banks approved in Argentina or into foreign banks that are regulated by the jurisdiction’s central bank or securities commission.
The bill further encourages Argentines to declare any holdings of financial assets that are subject to capital gains including fiat currencies, stocks, shares, and real estate.
Argentina Cracks Down on Crypto
Recent reports by Bitcoin.com revealed that the Argentine senate is discussing a project that would regulate the way in which crypto is promoted by individuals and organizations. The project is aimed at educating consumers on the dangers of investing in crypto.
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