Deputies of the lower house of the Argentine Congress agreed on a bill to provide tax preferences to citizens who own undeclared crypto assets abroad.

If the law is approved by the upper house, Argentine citizens will be given the opportunity to legalize cryptocurrency savings without paying any taxes to the country’s budget.

The zero rate would apply to digital assets with an equivalent value of up to $100,000. If the value of cryptocurrency assets exceeds this base value, the government will be able to apply preferential tax rates on the excess amount depending on the date.

For example, the bill provides for a minimum rate of 5% for the period of asset ownership until September 2024 and a maximum of 15% if cryptoassets are legalized in the first quarter of 2025.

The proposal for tax breaks for crypto investors was part of the original Omnibus Financial Reform Act presented to Congress in February by the administration of new President Javier Milei. However, in the first edition, the tax chapter of the law was excluded from the draft due to disagreements among legislators regarding the consequences for the economy.

The bill has already been submitted to the Argentine Senate.

Previously, local authorities called on crypto companies to undergo mandatory registration with the National Securities Commission of Argentina (CNV). Crypto firms that ignore the requirements of regulators will be forced to stop operating in the country.