Last Updated: 11 January 2023
A new bill in Argentina should start tracking down money launderers. Finance minister Sergio Massa wants people to declare where they store their bitcoin.
The new rules should therefore make it easier for authorities to track down money launderers. The declaration is a statement detailing exactly where your bitcoin sits. A separate request, as you might wonder if money launderers do this neatly then. Still, they hope to catch more tax with this.
— Crypto bits (@cryptobits_org) January 11, 2023
Argentines who ‘voluntarily’ give up their holdings pay only 2.5% profit tax on their bitcoin holdings. This applies to people who do so within 90 days before the law finally takes effect. The rate rises to 15% (!) profit tax. This is the standard in the country, but did not yet apply to crypto holdings.
In the Netherlands, you are also obliged to pay tax on your bitcoin. Which rules do you have to comply with? For most people, their bitcoin – and crypto assets – fall into box 3. Beyond certain limits, you must then remit a percentage of that in turn. Each country has its own tax rules around the use of BTC.
Argentina is the country with the largest loan with the International Monetary Fund (IMF), a credit of a whopping $50 billion. Besides being the world football champion, the country is also a country with many financial problems. Not for nothing are politicians popping up there too, using the money system as a campaign platform.
One example is Javier Gerardo Milei. Currently active as a politician from Buenos Aires. Milei calls himself an anarcho-capitalist’ and he would like to change how Argentina handles money.
In an interview, Milei was asked if he believes it is possible to discuss bitcoin as a means of payment in Argentina. He responded wittily:
“The core problem that people need to understand first is that the central bank is a scam. It is a mechanism by which politicians cheat the good people with inflationary taxation.”