Argentina has taken a significant step in regulating cryptocurrency operations within its borders.
The Comisión Nacional de Valores (CNV), akin to the nation’s securities regulator, announced on March 25 that virtual asset service providers must adhere to the Financial Action Task Force (FATF) recommendations.
This move aims to align the country’s Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) laws with international standards.
Registration Requirements for Legal Operation
Following the legislation approved by Argentina’s senate on March 14, crypto-related services are now mandated to register with the government.
This legislative change is part of a broader effort to curb money laundering and terrorism financing. CNV President Roberto Silva emphasized that unregistered virtual asset service providers would be prohibited from operating within Argentina, marking a pivotal moment in the nation’s approach to cryptocurrency regulation.
Impact of Presidential Election and FATF Requirements
The regulatory shift precedes Javier Milei’s victory in the November 2023 presidential election. Milei, known for his pro-Bitcoin stance, had stirred optimism among crypto enthusiasts.
However, the recent enactment of FATF requirements has sparked concerns regarding the implications for the digital asset landscape in Argentina.
Consequences for Crypto Services and Users
The new regulations have already begun affecting crypto services in Argentina.
Users of Strike, a popular app for Bitcoin payments via the Lightning network, reported limitations on fiat transfers to bank accounts.
The broader impact on businesses and consumers utilizing crypto services remains to be fully understood.
In a notable development from December 2023, Argentina’s minister of foreign affairs indicated that contracts could be settled using Bitcoin and other cryptocurrencies, showcasing the government’s evolving stance on digital assets.
Public Address by President Milei
Amidst these regulatory changes, President Milei made a public appearance on April 2, commemorating Malvinas Day and the lives lost in the 1982 Falklands War.
This event highlighted the new administration’s ongoing engagement with national issues amidst significant shifts in the country’s cryptocurrency regulatory framework.
As Argentina navigates the complexities of integrating cryptocurrency into its financial system, the global community watches closely to see how these regulations will shape the future of digital assets in the country and potentially influence regulatory approaches in other jurisdictions.
