A controversial draft law proposed by newly elected Argentine President Javier Milei allows for the declaration of domestic and foreign cryptocurrency holdings to win preferential tax rates for Argentineans and legalize the use of these assets in Argentina, regardless of their source or place of ownership. The asset regularization plan is part of a proposed wide-ranging economic and political reform. Milei praised Bitcoin during his campaign and was widely welcomed by the cryptocurrency market. Milei won the presidential election in November. However, his comprehensive bill faced strong opposition and controversy in the country shortly after its launch on Tuesday.

Under the proposed regularization system, cryptocurrencies are among various assets ranging from cash to property, and early declaration can reduce penalties. For example, citizens who declare their cryptocurrency holdings before March 31 will only be subject to a 5% tax rate, which will increase to 15% by November 30.