Argentina set to regulate crypto exchanges via an executive order


  • Argentina is taking steps to regulate crypto exchanges across the country via an executive order.
  • Implications for market dynamic.

The Argentine government is taking proactive steps to regulate cryptocurrency service providers, signaling a shift towards tighter oversight in the crypto sector. This move comes amidst efforts to prevent Argentina from falling back into the gray list of the Financial Action Task Force (FATF), where it was previously listed from 2010 to 2014 due to deficiencies in its anti-money laundering policies.

Argentina to establish regulatory framework via an executive order

President Javier Milei is reportedly poised to issue an emergency decree aimed at establishing a regulatory framework for cryptocurrency operations, placing them under the purview of the national securities watchdog (CNV). The imminent visit of the FATF, scheduled to assess Argentina’s anti-money laundering measures, has accelerated the government’s regulatory agenda in the crypto space.

By instituting stricter regulations, Argentina aims to demonstrate its commitment to combating money laundering and terrorist financing, key criteria for avoiding re-inclusion on the FATF gray list. Under the proposed executive order, all cryptocurrency service providers, regardless of their geographic location, would be required to register with the national cryptocurrency watchdog and obtain a license from the organization.

This regulatory oversight aims to enhance transparency and accountability within the crypto ecosystem, aligning with international standards set forth by organizations like the FATF. In addition to registration and licensing requirements, cryptocurrency service providers would be obligated to furnish information to the national intelligence unit to facilitate compliance with anti-money laundering laws.

Implications for market dynamic

The crypto exchanges will also carry out activities including producing risk reports and reporting suspicious transactions, further bolstering the government’s efforts to curb illicit financial activities in the crypto sector. While the proposed regulations are intended to strengthen the integrity of the cryptocurrency market, they may also have unintended consequences, particularly for smaller players.

Smaller exchanges and peer-to-peer (P2P) markets could face challenges in meeting the stringent regulatory requirements, potentially leading to their withdrawal from the market. This could result in a concentration of market share among larger cryptocurrency providers, who may be better equipped to navigate the regulatory landscape.

The looming deadline for the issuance of the executive order coincides with the FATF’s upcoming visit to Argentina on March 6th, during which the country’s progress in implementing anti-money laundering measures will be evaluated. The timing underscores the government’s urgency in addressing regulatory gaps and aligning with international best practices in combating financial crime.

In summary, Argentina’s move to regulate cryptocurrency service providers reflects its commitment to enhancing oversight in the crypto sector and bolstering its anti-money laundering framework. While the regulatory measures are aimed at promoting transparency and accountability, their impact on smaller players remains a point of concern. Striking a balance between regulatory compliance and fostering innovation will be crucial in ensuring the continued growth and stability of Argentina’s cryptocurrency market.

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 decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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