New regulations on cryptocurrency services in Argentina
On March 13, the Argentine National Securities Commission (CNV) issued the final regulations related to Virtual Asset Service Providers (VASPs). This regulation, according to Joint Resolution No. 1058, includes conduct standards and storage requirements for cryptocurrency exchanges and other digital asset trading platforms. The objective of the regulation is to ensure transparency, stability, and user protection in the cryptocurrency ecosystem.
Requirements and deadlines
The regulation requires VASPs to comply with a series of obligations such as registration, cybersecurity, asset custody, anti-money laundering, and risk disclosure. From 2024, VASPs operating in Argentina must register with PSAV. Non-compliance may lead to registration cancellation and the company being banned from operating by court order.
Enhancing transparency and stability
According to tax lawyer Diego Fraga, the final guidelines include mandatory separation of company funds and client funds, annual audits, and monthly reporting to the CNV. Registered individuals must comply with the new regulations by July 1, while companies established in Argentina have a deadline of August 1. Companies established abroad have a deadline of September 1.
Cryptocurrency growth in Argentina
Despite the LIBRA scandal, cryptocurrency adoption is still increasing in Argentina due to the rapid devaluation of the peso. According to a report, from July 2023 to June 2024, Argentina has surpassed Brazil to become the largest cryptocurrency market in Latin America, with a total value of around $91 billion. This flow is mainly driven by the public's shift to stablecoins like Tether's USDT.
Conclusion
Despite some credibility issues due to the LIBRA incident, the trend of cryptocurrency adoption in Argentina remains very positive, emphasizing the need for clear regulations to protect consumers and encourage the sustainable development of the cryptocurrency market.
