Milei eliminated the check tax for cryptocurrencies and other digital transactions

The Government of Javier Milei announced exemptions from the tax on bank debits and credits, known as the check tax, for various actors in the financial system, with a central impact on the cryptocurrency sector.

This is a new measure to deepen deregulation and promote financial innovation, aiming to boost economic development.

The decision affects crypto wallets, non-bank collection companies, card administrators, and cash transporters, improving the competitiveness of the system and eliminating distortions inherited from previous governments.

Tax Reduction

The main beneficiary will be the crypto ecosystem, which until now faced a differential tax burden that limited its development.

With this change, companies registered as Virtual Asset Service Providers (VASP) with the National Securities Commission (CNV) will access a specific exemption that significantly improves their tax situation.

The regulation also eliminates a restriction in place since 2021, which required the payment of the check tax on operations related to crypto assets, even when users were exempt from other transfers.

With the new scheme, that impediment disappears and the buying and selling of digital currencies are subject to the same conditions as the rest of the financial system.

The decree also establishes that accounts used exclusively for cryptocurrency operations will be exempt, as long as their holders are registered in the VASP registry of the CNV.

The measure represents a structural change in the treatment of the crypto ecosystem in Argentina, equating it with other traditional players in the financial system. This is a historic demand of the sector, which for years has pushed for changes to eliminate regulatory disadvantages that hindered the expansion of these technologies.

The growth of the crypto sector in the country reinforces the relevance of such measures. According to Bitso's Crypto Panorama report, stablecoins accounted for 71% of cryptocurrency purchases, while bitcoin holds 52% of total holdings in Argentina, consolidating itself as a key tool for preserving income value.

The Government's decision is part of a broader strategy of tax reduction and regulatory simplification. By removing barriers and promoting formalization, Javier Milei's administration seeks to position Argentina as a more competitive environment for the development of the digital economy.

With this step, the country moves towards a more modern scheme, where financial innovations can develop on equal terms, leaving behind regulations that hindered their growth.