Argentina’s Ministry of Economy, which is in charge of managing the country’s economic policy, enacted a law to encourage Argentines to register their bitcoin holdings by offering an incentive in the form of reduced tax rates. This law was created by the Ministry of Economy, which is in charge of managing the country’s economic policy.

Economy Minister Sergio Massa is said to have introduced a bill entitled Externalization of Argentine Savings with the intention of preventing money laundering, according to an article that was published on January 6 by a local media outlet. known as Errepar.

An affidavit is a statement made under oath that identifies the location of property held by the individual. Crypto asset holders will need to provide the government with an affidavit to comply with government requirements. In order to encourage people to come forward and report their assets, the law provides them with tax breaks as an incentive.

Those individuals who voluntarily disclose their assets within the first ninety days of the law’s implementation will be subject to a capital gains tax on their cryptocurrency holdings that is only 2.5%. This tax will only apply to those natural persons who disclose their assets.

This tax rate would increase by a small amount once every three months until it reaches the ordinary capital gains tax rate of fifteen percent for the nation, which is currently fifteen percent. After that, the tax rate would remain at fifteen percent.

Additionally, the measure hopes to encourage Argentines to clarify their ownership of additional financial assets that may be subject to tax as capital gains. These assets include stocks, bonds, and other investment vehicles. These assets can take the form of fiat currency, stocks or shares, real estate, or even home furnishings. The proposal will be discussed and voted on during the next meeting of the parliamentary session.

Argentines have been drawn to cryptocurrencies due to the high inflation rate in the country, as well as the convenience of using them for transactions involving currencies from other countries.