Argentina's Securities and Exchange Commission (CNV) has issued Resolution No. 1108, allowing citizens to invest previously undeclared funds—known as 'mattress money'—into cryptocurrency exchanges and other brokerage accounts. The move is part of the broader Fiscal Innocence Law reform that shifts the tax regime from presumption of evasion to presumption of good faith.
In a statement, the CNV said: '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.'
Key Provisions of the New Rules
Resolution No. 1108 establishes that Argentine citizens who opt into the new regime can deposit undeclared cash with brokers or Virtual Asset Service Providers (VASPs). Transactions of virtual assets to and from accounts under their ownership or joint ownership in registered VASPs are also permitted.
CNV President Roberto E. Silva highlighted the relevance: 'The inflow of funds and assets into the Argentine financial system is fundamental for the growth of the capital market.' Economy Minister Luis Caputo added that these capitals can help grow local investment levels, stating: 'The development of a robust domestic capital market will be a source of channeling savings towards investment in the real economy.'
Economic and Market Implications
Local economists welcomed the measure, noting that it allows previously excluded capital to enter investment markets in a simple way. The reform is expected to inject liquidity into both the stock market and the crypto sector, while gradually reducing the size of the informal economy.
Argentina has long struggled with inflation and currency controls, leading many residents to hoard U.S. dollars at home. The new rules provide a legal channel for these assets to be deployed productively, especially in crypto—a sector the current government has embraced since taking office in 2023.
Analysts believe this regulatory shift could serve as a model for other high-inflation economies in Latin America. As funds flow into registered VASPs, Argentine crypto trading volumes may see a significant uptick in the coming months.