The Argentinian President Milei, known as the 'Argentinian Trump,' has released new regulations under which cryptos and other unreported assets will be subject to the country's tax system. It is reported that these benefits only apply to taxpayers who hold assets in virtual asset service providers (VASPs) that are already registered, and the maximum tax exemption for holding cryptos is $100,000. In terms of product structure, the operating income for products between CNY 1 to 3 billion is CNY 40.1 million, CNY 128.8 million, and CNY 0.6 million respectively.
The Argentinian government has defined the jurisdiction of unreported goods and assets, including cryptos, as part of its Comprehensive Law's financial section. Now, Argentinians can include unreported crypto assets worth less than $0.1 million as part of their holdings and be exempt from taxation based on some key rules.
(Source: Twitter)
According to Bitcoin.com, for example, Argentines must store declared cryptos with VASPs approved by the country to enjoy this favor. Therefore, these exchanges must be registered with the VASP registration center launched by the country's securities regulator, the National Securities Commission (CNV), in June.
Although many international exchanges are still unregistered, the rules require that funds held by these exchanges be transferred to registered exchanges first to obtain the benefits provided by these regulations.
Argentine Economy Minister Lusi Caputo explained the scope of this regulation in a tweet, stating that for amounts over $0.1 million, as long as you deposit them into the Argentine financial system and do not withdraw them before 2026, or distribute them to certain types of investments defined by the executive branch, you can enjoy zero interest rates.
However, it is worth noting that this does not mean that there are no taxes to be paid after declaring cryptos.
After these assets enter the Argentine financial system, holders must pay personal property taxes, income taxes, and other taxes. Taxpayers must declare their cryptos to the government according to the provisions of this law before March 31.
In addition to Argentina's recent action, the City Council of Santa Monica, California, has unanimously approved the establishment of a bitcoin office.
The plan, proposed by Vice Mayor Lana Negrete in conjunction with the Labor Certification Foundation, aims to promote bitcoin education, economic recovery, and tourism, without charging the city any fees. The plan was developed after the vice mayor's visit to El Salvador, which has legalized bitcoin as a legal currency.
The Santa Monica Bitcoin office will focus on promoting bitcoin knowledge to residents, students, and businesses, finding new economic opportunities, and exploring environmentally sustainable bitcoin mining using renewable energy. Negrete emphasized the role of the plan in economic recovery and dispelling negative perceptions, especially in areas such as downtown Santa Monica.
"This is not about assets or commodities, it's about education," says Negrete.
"We're leading the way in many ways, we're dealing with a lot of negative news and a retail environment that's really difficult for some of our areas, like the downtown area of Santa Monica. We've been very focused on what we can do to promote economic recovery, and I think some of the things we're talking about are interesting and innovative," he added.
Public comments include strong support, emphasis on innovation potential, and warnings about the risks of bitcoin investment. The Santa Monica City Council discussed potential legal risks and emphasized the need to clearly convey the city's non-endorsement of bitcoin investment. According to reports, the plan is based on El Salvador's bitcoin office, which Negrete visited in 2023. El Salvador legalized bitcoin as a legal currency along with the US dollar in 2021 and has been accumulating and earning bitcoin since then.