Argentine lawmaker introduces bill for workers to be paid in crypto
The proposal may help Argentinians in the export business avoid heavy taxes from foreign currency payments.
A member of the lower house of the Argentine National Congress has introduced legislation that would allow certain workers in the country to receive some or all of their salary in crypto.
In a Tuesday tweet, Argentine Chamber of Deputies member José Luis Ramón said his proposed crypto bill would apply to anyone working as an “exporter of services” and those who depend on an employer for income. Should the legislation pass, it would allow such workers the choice of receiving a full or partial salary in crypto or Argentine pesos.
“The idea is that [workers] can strengthen their autonomy and retain the purchasing power of their remuneration,” said Ramón. “This initiative stems from the need to promote greater autonomy and governance of wages, without this implying a loss of rights or exposure to situations of abuse within the framework of the employment relationship.”
According to local news outlet La Nueva Mañana, workers who provide services abroad such as exporting would not necessarily need to convert their crypto income to Argentine pesos as they do with other foreign currencies. Law 27,541, passed by the Argentine National Congress in December 2019, established a 30% tax on foreign currency, but Bitcoin (BTC) and other tokens may not fall within this legal framework.
The crypto bill must be passed by both the Argentine Chamber of Deputies and the Senate before being sent to President Alberto Fernández for approval. Ramón is one of ten congresspeople representing the province of Mendoza, and the leader of the 6-person Federal Unity for Development alliance among three political parties. However, there are 257 members in the legislative house and 72 senators. Everybody’s Front and Together for Change are the two dominant alliances in the congress.
Related: Argentina’s tax body reportedly asks crypto firms to report all activity
The proposed bill comes as some lawmakers in Central and South American countries are pushing for regulatory clarity or outright adoption of crypto. Last month, El Salvador passed a law making Bitcoin legal tender, legislation that will go into effect on Sept. 7. Congresspeople in both Brazil and Panama have indicated through social media channels they would push for forms of legislation supporting crypto.
