The government of Argentina has calculated that its citizens have over $100 billion worth of undeclared cryptocurrencies.
Following President Milei’s latest decree permitting contracts in any currency, even crypto ones and a mass whitening of these assets. But citizens will need to file their crypto holdings and pay taxes, a requirement that most have not complied with.
The experts state that the move is aimed at boosting tax revenue by integrating untaxed wealth into formalized one. Pablo Reyes, Chief Executive of crypto wallet SaldoAr warns that once people start using cryptocurrencies they will need to pay more taxes.
For its part, contracting in crypto is already allowed by Foreign Minister Diana Mondino; on the other hand, Manuel Beaudroit, CEO of Belo application, deems that decree increases business agility.
But there are hurdles. Authorities can still require justification for the origins of crypto funds spent on transactions. Tax consultant Félix Rolando stresses that the crypto is already in law and must be reported.
Crypto also complies with international money-laundering regulations, which specify that platforms track transactions and user data.
With more than a century of inflation, the preference for holding wealth in anything but pesos has fueled interest in crypto. It already ranks among the top 10 in holdings of crypto, and it is third behind only the US and Russia.
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