The measure, passed by the Argentine Securities and Exchange Commission (CNV), will allow Argentines to invest previously undeclared funds into cryptocurrency exchanges and also other kinds of brokerages. Economy Minister Luis Caputo stated that these capitals can help grow local investment levels.
Argentina Reforms Regulatory Framework to Allow ‘Mattress Money’ Investments in Crypto
Argentina is adapting its regulatory framework to allow previously undeclared funds to enter the financial system through crypto and other investments.
The Argentine Securities and Exchange Commission (CNV) issued new rules to adapt its procedures to the recently approved Fiscal Innocence Law, which stopped the previous tax regime, simplified the treatment of tax evaders, and suspended legal actions against them.
The institution declared:
“Years of currency controls, high inflation, and a stifling tax system generated widespread structural informality. Under that system, tax evasion was presumed; now, the starting point is once again good faith.”
General Resolution No. 1108 establishes that Argentine citizens who choose to apply to this regime can invest their previously undeclared funds, referred to as mattress money, inside the Argentine financial system.
Among the options available for investing these funds are cash deposits to brokers or Virtual Asset Service Providers (VASPs). Also, transactions of virtual assets to and from accounts opened under their ownership or joint ownership in registered VASPs are included.
Local economists celebrated the measure, highlighting that it will allow previously excluded capital to enter investment markets in a simple way.
Roberto E. Silva, President of the CNV, highlighted the relevance of the new ruleset, stating that “the inflow of funds and assets into the Argentine financial system is fundamental for the growth of the capital market.”
In the same way, Economy Minister Luis Caputo referred to the potential effects of the measure on the expansion of local capital markets. “The development of a robust domestic capital market will be a source of channeling savings towards investment in the real economy, crucial for the sustained economic growth of our country,” he assessed.
FAQ
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What is the purpose of Argentina’s new regulations?
The regulations aim to allow previously undeclared funds, or “mattress money,” to re-enter the financial system through cryptocurrency and other investments. -
What has changed in the tax regime?
The Argentine Securities and Exchange Commission stopped the previous tax regime and simplified the penalties for tax evasion under the new Fiscal Innocence Law. -
What investment options are available under the new rules?
Citizens can invest in cash deposits with brokers, Virtual Asset Service Providers (VASPs), and conduct transactions of virtual assets through registered accounts. -
How will this measure impact Argentina’s economy?
Economists believe this will facilitate capital flow into investment markets, supporting the growth of local capital markets and the overall economy.