Argentina has introduced a requirement for cryptocurrency companies to register with the Securities Commission

The new rule has been introduced to improve compliance with FATF recommendations

02.04.2024 - 08:00

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3 min

What’s new? The Argentine Securities Commission (CNV) has announced the creation of a registry of virtual asset service providers. Companies and individuals carrying out such activities must comply with the registration requirements approved on March 14 by the Argentine Senate as part of amendments to the current regulatory framework. The amendments were adopted under the recommendations of the International Financial Action Task Force (FATF).

Material by Forbes

What else is known? This new requirement will affect businesses that provide services for buying, selling, sending, receiving, trading cryptocurrencies, and lending. Every provider must register, the requirements apply not only to local companies but also to those that provide services in the Argentine market and are based elsewhere. CNV president Roberto Silva emphasized that providers who are not registered will not be able to operate in the country.

Some industry experts criticized the initiative, as the CNV’s choice as regulator implies that cryptocurrencies belong to the category of securities. For example, NGO Directive member and Money On Chain protocol co-founder Manuel Ferrari emphasizes that bitcoin is money, not a security. He said that the initiative is as absurd as if fiat currency exchanges or gold buying and selling stores were forced to register with the CNV. However, he admits that the initiative is aimed at meeting the requirements of international organizations and will not affect users in the short term.

FATF: By mid-2023, only 30% of countries have implemented crypto regulation

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Earlier, the Argentine government removed a clause on declaring ownership of cryptocurrencies from the omnibus bill submitted to Congress. The clause was supposed to impose a tax of up to 15% on any undeclared digital assets, excluding the first $100 000. In March, Argentines began to buy BTC more actively amid the strengthening of the peso. The number of purchase transactions on local exchanges approached a 20-month-high.

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