Introduction
In a significant move aimed at enhancing the accessibility of financial alternatives in Argentina, President Javier Milei has enacted an executive order that introduces tax exemptions for registered virtual asset service providers (VASPs). This decision is expected to alleviate financial burdens on users by eliminating the 1.2% tax that has applied to transactions related to these platforms since November 2021, a policy originally established under former President Alberto Fernandez‘s executive order 796/2021.
Changes to Tax Policy
Previously, the so-called “cheque tax” was applicable to operations involving crypto exchanges while traditional banks enjoyed exemptions. However, under the new Executive Order 475/2026, VASPs will now be included in the tax relief, promoting a more equitable financial environment that recognizes the evolving nature of the technological landscape.
By doing so, the Milei administration aims to foster greater inclusion of cryptocurrency exchanges within the Argentine financial sector, thereby placing them on more equal footing with traditional banking institutions.
Impact on Users and Industry
The implementation of this tax exemption is expected to yield lower deposit and withdrawal fees for users, making crypto transactions more financially viable. Industry experts have reacted positively to this change, predicting that it will enhance competition among exchanges and lead to the development of a wider array of crypto-related financial products.
Julian Colombo, who serves as the Senior Director for South America at the exchange platform Bitso, remarked on the significance of this policy shift, noting, “After 534 days, the playing field has been leveled. The ‘cheque tax’ exemption for the regulated crypto sector has been approved, and I anticipate seeing improved products emerging from all platforms in the coming months.”
Similarly, Manuel Baudroit, co-founder and CEO of the crypto exchange Belo, expressed gratitude towards President Milei, emphasizing the broad benefits this decision will bring to millions of Argentinians engaged with cryptocurrencies. In a related communication, Belo informed its users that the changes will initially impact transactions involving Circle’s stablecoin, USDC.
Conclusion
This latest development reflects Argentina’s gradual steps towards embracing digital finance, indicating a possible shift in the country’s economic landscape as it adapts to the growing demand for alternative assets.
