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Crypto regulations are getting more stringent over time as the count of crimes rises in the industry. Recently an Argentinian anti-money laundering regulator is reportedly working to force cryptocurrency firms to report their movements. Moreover, the regulatory agency seeks to force the firms to take Anti-Money Laundering measures on Argentinian soil. The regulation for such a purpose might be ready for approval this year as per some local media. It is also unveiled that such could be the consequences of the recent requirement approved in Argentina’s deal with the International Monetary Fund (IMF).
Argentinian crypto exchanges to report transactions
The Argentinian Financial Information Unit (UFI), which is the anti-money laundering regulator in the nation, is taking crypto transactions seriously. The regulator is working on including digital assets firms and exchanges that operate on Argentinian soil as entities that will have to report to the local authority.
The regulation is expected to be ready for publication within 2022.
This means soon, the cryptocurrency-based firms in the region will have to create anti-money laundering plans and report suspicious transactions to the aforementioned organization so such firms would comply with the upcoming rules.
Such measures could complicate the panorama
According to experts in the cryptosphere, if the regulators take such measures, the scenario could complicate the regulatory panorama in the nation, especially for firms that offer crypto custody and trading services. Moreover, such rules would also hinder firms that desire to enter the Argentinian cryptocurrency market.
Until now, such firms just had to comply with a rule that was approved back in 2019.
International Monetary Fund powered measures
To some key figures of the Argentinian crypto industry, such stringent measures would be the natural consequence of the requirement that is introduced in the recently approved deal that the nation made with the IMF. Indeed, the agreement was made to renegotiate its $45 billion debt payment. It is also worth noting that the IMF required the nation to discourage the use of digital currency in the prevention of money laundering and informality.
Regulatory measures face criticism
Ignacio Carballo, the director of UCA, a fintech and digital banking firm, has criticized such measures being taken by the regulators. He further cited that the only thing that seems highly debatable to him is disintermediation since it is an unstoppable phenomenon in the world. However, it is not a matter of forcing it, but crypto firms should care for and protect the already unbeatable decentralization.
