Argentina announces a new regulatory policy involving a fiscal package of tax amnesty.
The tax amnesty is meant for traders who own up to $100,000 worth of assets, including crypto tokens.
The new regulatory plan helps to ease the pressure exerted by the FATF.
Argentina, a haven for cryptocurrency transactions with over $85.4 billion in activity last year, is introducing a new regulatory framework aimed at both encouraging compliance and curbing illicit activities. The government has unveiled a tax amnesty program for crypto traders holding up to $100,000 in assets, a move that officials believe could help alleviate pressure from international regulatory bodies.
National Securities Commission President Roberto Silva asserted that the tax amnesty could help ease pressure from the Financial Action Task Force (FATF). The FATF is a regulatory body affiliated with the World Bank, IMF, and United Nations.
The government’s move follows increased FATF scrutiny of the country’s financial economy. Reportedly, the FATF has threatened to add Argentina to its gray list, which could significantly impact foreign investments, international interest rates, and GDP growth.
With the new tax amnesty and crypto registration plans, Argentina would begin its regulatory compliance, Silva stated. The country’s key objective is to address the growing threats of the crypto market. The NSC President added that the rules would largely mirror regulations implemented in the United States. He further stated, “Today, we are focused on amending everything that has to do with money laundering and reporting entities.”
Argentina has long been known for its initiatives toward establishing a crypto hub. Under the new pro-Bitcoin libertarian President Javier Milei, the country has been striving to solidify a leading position in the global crypto market.
To address the increasing number of crypto-related crimes and money laundering, Argentina launched investigations earlier this year. In May and June of 2024, Argentina raided more than 64 crypto firms, resulting in both domestic and international arrests for smuggling, money laundering, and other illegal activities.
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