According to a recent report by Reuters, Argentina is on track to tame the rapidly growing cryptocurrency market with a new law.
The move is meant to combat illegal activities that are enabled by cryptocurrencies.
The new law provides tax exemptions for those who declare up to $100,000 worth of digital assets.
Tomiwabold OlajideDue to concerns about money laundering activities, Argentina started facing increasing pressure from the Financial Action Task Force (FATF), a "policy-making body" that aims to fight financial crimes.
In order not to appear on the FATF's much-dreaded grey list, Argentina rushed to regulate digital assets. The registration of cryptocurrencies is supposed to be the first step toward regulation.
Argentina has long been known as one of the leading cryptocurrency hubs due to its economic woes. In fact, it recorded more than $85 billion worth of crypto transactions in 2023.
Last November, Argentina elected pro-Bitcoin libertarian Javier Milei as its new president.
Recently, some publications reported that Argentina was considering making Bitcoin legal tender under Milei's leadership. However, these reports were incorrect, and the president's comments were misinterpreted.
For now, it seems like Argentina is focused on providing the cryptocurrency sector with regulatory clarity instead of taking such radical steps as adopting the Bitcoin standard.
The idea of such a major country as Argentina adopting Bitcoin as its official currency seems to be too far-fetched despite some pro-crypto statements made by its libertarian leader. The country's central bank currently has to deal with such issues as devaluation and inflation.
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Arman Shirinyan
Godfrey Benjamin
Dan Burgin
Vladislav Sopov