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Argentina’s economic policy officer, the Argentine Ministry of Economy, has drafted a bill to encourage Argentines to declare their holdings of cryptocurrencies, citing discounted tax rates.
Aiming to combat money laundering, the “Externalization of Argentina’s Savings” bill was introduced by Economy Minister Sergio Massa.
The bill would require cryptocurrency holders to prepare affidavits. This is an affidavit identifying the location of holdings to the government.
The bill proposes tax incentives to encourage citizens to declare their holdings.
Those who voluntarily declare their holdings within 90 days of the law taking effect will pay a meager 2.5% tax on capital gains on their cryptocurrency holdings. This rate will be phased in every 90 days until it reaches the country’s standard capital gains tax rate of 15%.
The bill also aims to encourage Argentina to declare holdings of fiat currency, stocks, stocks, real estate, and even other financial assets subject to capital gains such as furniture.
The proposed law would force domestic and foreign holdings to be deposited in approved Argentine banks or foreign banks regulated by the central bank or securities commission in their jurisdiction.
The bill will be submitted to the next Diet session for discussion.
Related: Argentinian State Issues USD-Pegged Stablecoin
Emerging markets are hotbeds for cryptocurrency adoption, with Argentina ranked 13th overall in blockchain data company Chainalysis’ 2022 Global Adoption Index.
Argentines are attracted to cryptocurrencies because of their high domestic inflation and ease of use for cross-border transactions. According to Statista data, Argentina’s inflation rate will reach almost 72.4% in 2022.
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