Loading...

Argentina introduces mandatory crypto exchange registry

TL;DR

  • Argentina enforces a mandatory registry for cryptocurrency companies through the Comisión Nacional de Valores (CNV).
  • President Javier Milei shifts from expected crypto-friendly policies to stricter industry regulations.
  • The new registration requirement aligns with the Financial Action Task Force’s standards.

Argentina has achieved the containment of the crypto market within its boundaries. The country’s regulator of securities, Comisión Nacional de Valores (CNV), has introduced a mandatory registry for companies participating in cryptocurrency businesses. This involves buying, selling, sending, receiving, lending, and trading of cryptocurrency. It is pertinent for the local and multinational companies that are operating in the Argentinian market.

Having assumed the role of president in December 2023, Javier Milei, who is an anarcho-capitalist and a libertarian in the first place, was thought to lead a friendly-to-crypto government; nevertheless, afterward, the administration chose the approach of strict control over the crypto industry. In March, the Argentine Senate made the amendments, which were aimed at incorporating this new registration obligation into the national regulatory framework. This is formulated to meet the standards of the Financial Action Task Force.

Argentina’s CNV demands crypto exchanges to register

The decision has sparked diverse responses across the crypto community. Roberto E. Silva, president of the CNV, stressed the importance of compliance. He stated that unregistered entities would not be able to operate in Argentina. Following the announcement, the CNV consulted with major legal firms and the Fintech chamber to discuss the registry’s implementation. This meeting saw attendance from several local company representatives, indicating the government’s intention to collaborate with industry stakeholders.

However, some industry participants have criticized the new regulation. Manuel Ferrari, from an Argentine NGO and co-founder of the Money On Chain protocol, compared the registry to requiring currency exchange houses or gold traders to register with the CNV, calling it “complete nonsense.” Nicolas Bourbon, co-founder of the KamiPay payments solution, noted that Milei’s administration does not favor Bitcoin over other currencies, highlighting a general respect for currency freedom. Both Ferrari and Bourbon suggest the measure aims more to satisfy international institutions than to benefit Argentine citizens or the cryptocurrency sector directly.

Provincial currencies to complement Argentina’s crypto strategy

The regulatory update occurs against a backdrop of soaring cryptocurrency adoption in Argentina, fueled by an inflation rate surpassing 270%. Argentinians increasingly turn to digital currencies as a financial haven, leading to a surge in both legitimate transactions and fraudulent activities. The CNV’s regulation seeks to mitigate these risks while fostering innovation in the crypto space.

Argentina’s growing significance in the global crypto exchange industry is evident. The launch of platforms like OKX offers Argentinians wider access to digital assets and web3 technologies. Furthermore, several provinces have announced plans to create their currencies as part of a broader economic strategy, including significant measures like a 50% devaluation of the peso. These local currencies aim to address financial challenges at the provincial level, although they also raise concerns about potential inflationary effects. With this latest directive, Argentina positions itself to capture additional market share in the evolving crypto landscape, mirroring regulatory trends in other Latin American countries like El Salvador.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Share link:

Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

IMF shares what it thinks could crash the global economy
Cryptopolitan
Subscribe to CryptoPolitan