The Argentine government has introduced new measures for cryptocurrency holders. Citizens can avoid certain taxes by declaring their digital assets. The move aims to bring crypto into the financial mainstream, and might be seen as a part of wider crypto adoption and overall economy liberalization.

The new rules are part of President Javier Milei's Fiscal Package unveiled last Friday. Under amended money laundering laws, Argentines can declare up to $100,000 in Bitcoin and other tokens tax-free.

But there's a catch. The exemption only applies to assets held on government-registered platforms.

"Virtual assets are considered 'within Argentina' if managed on exchanges registered with the National Securities Commission (CNV)," the law states.

This could be a problem for many Argentines, because they use international wallets not registered with the CNV, like popular Exodus or MetaMask.

Valuation is another tricky issue. The law requires using market rates from December 31, 2023, or acquisition value if higher. This complicates things for stablecoin holders, who often pay premiums due to currency controls.

"Argentina is an anomalous market where many people buy USDT and don't leave room for much else," Tether's chief Paolo Ardoino tweeted recently. Stablecoins are popular as a hedge against inflation.

Anyway, Argentina is going pretty rough on those who will not comply.

Failing to declare crypto assets could result in criminal charges.

At the same time, declaring crypto won't exempt holders from all taxes. It only avoids a "special" levy on undeclared assets. Economy Minister Luis Caputo said assets must stay in the Argentine financial system until December 2025 to qualify.

Similar rules apply to foreign currencies. Non-declaration could result in taxes of 5-15% of the dollar value.