- Argentine Senator Ezequiel Atauche proposes to include cryptocurrency mining in the Law for the Promotion of the Knowledge Economy No. 27,506.
- The proposal aims to extend tax incentives to blockchain technology, aligning with sectors such as AI and biotechnology.
Argentine Senator Ezequiel Atauche recently proposed an amendment to Law 27.506, the Law for the Promotion of the Knowledge Economy, to include cryptocurrency mining and blockchain technology among the activities eligible for tax incentives.
Enacted in 2019, this law seeks to stimulate technology and knowledge intensive sectors through tax benefits, boosting the development and creation of high quality jobs in areas of high innovation.
The document disclosed that «the Knowledge Economy Promotion Regime Law (27,506) was enacted in Argentina in 2019 and aims to promote knowledge and technology intensive activities through tax benefits, contributing to the development and generation of quality employment in high innovation sectors. Among the activities promoted are: software, biotechnology, artificial intelligence, professional services, audiovisual industry, and several others related to the knowledge economy.»
The law covers sectors such as software development, biotechnology, artificial intelligence, professional services and the audiovisual industry. Atauche’s proposal suggests that, despite not being explicitly listed, cryptocurrency mining and blockchain technology inherently meet the law’s criteria due to their technological and knowledge-intensive characteristics.
In the petition filed before the Senate of the silver country, it is explained that «in said norm, cryptocurrency mining and blockchain technology development are not explicitly included in the Law of the Regime for the Promotion of the Knowledge Economy (27.506). However, given their technological and knowledge-intensive nature, it is possible to argue that these activities are compatible with the spirit of the law.»
Atauche noted the growth potential of cryptocurrency mining in Argentina and the existing challenges that need to be addressed to fully empower this sector. These challenges include regulatory uncertainties and the need for sustainable energy solutions to support the expansion of mining operations.
«Currently, while cryptoasset mining has potential to grow in Argentina, it also faces regulatory and economic challenges that must be addressed to maximize its contribution to national development. This includes resolving regulatory uncertainties and ensuring access to sustainable energy infrastructure to support its expansion,» states the bill presented by the senator.
The senator’s amendment seeks to modify Article 2 of Law 27,506 to formally recognize activities related to blockchain technology and cryptocurrency mining as part of the Regime for the Promotion of the Knowledge Economy.
Following reports from Argentina in CNF, this inclusion would facilitate the development of advanced hardware and software technologies, promote innovations in cryptography and cybersecurity, and encourage the optimization of resources in mining operations.
«This modification would generate a contribution to technological development, cryptoasset mining fosters the development of advanced hardware and software technology, while driving innovations in cryptography and cybersecurity. In particular, developments that optimize the use of resources for mining,» the politician reported in his request.
This legislative change is expected to contribute significantly to Argentina’s technological development and economic diversification, supporting sectors that are at the forefront of global technological advancement.
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Market capitalization is approximately $482 billion, supported by strong trading volume of $21.15 billion in the last 24 hours. Analysts remain optimistic that sustained upside momentum could take Ethereum towards $4,500-5,000 in the near term.
