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The Argentinean government has introduced new regulations aimed at meeting the recommendations of the Financial Action Task Force (FATF).
The Argentinean government has also come forward in the world of crypto scams to save retail investors. They have introduced several regulations for the crypto industry.
Increasing Crypto Regulations In Argentina
The regulations will include the mandatory Registry of Virtual Asset Service Providers (VASPs). Media groups claim that it is due to the rise of ‘anarcho-capitalist’ leader Javier Milei in Argentina.
Businesses that fail to comply with the registration will be unable to operate within the country. CNV’s (National Truth Commission in English) president, Roberto E. Silva, has made it clear that there will be no room for interpretation. The securities watchdog has already held meetings with legal firms and the Fintech chamber to discuss the implementation of the Registry.
It will affect businesses engaged in various crypto-related services, including buying, selling, sending, receiving, lending, or trading cryptocurrencies, both locally-based and those operating overseas within the Argentine market.
The Good & The Bad Of These Regulations
The registry has sparked debates among experts and industry figures. Manuel Ferrari, a member of the Argentinian NGO Directive and co-founder of the Money On Chain protocol, has expressed his concerns about the registry.
Ferrari criticized the requirement for businesses to register with the CNV, comparing the process to that of currency exchange houses or gold shops.
While some crypto enthusiasts, like Ferrari, are disappointed with the registry, others see it as primarily driven by international demands rather than a direct attack on Bitcoin.
Nicolas Bourbon, co-founder of KamiPay payments solution, believes that Milei’s stance on Bitcoin is not particularly for or against it, but rather respects the freedom of currencies and does not interfere with individuals’ choices.
The registry will require businesses engaged in various crypto-related services, including buying, selling, sending, receiving, lending, or trading cryptocurrencies, both locally-based and those operating overseas within the Argentine market, to go through the registration process.
Failure to comply with the registration will result in an inability to operate within the country, as emphasized by CNV’s president, Roberto E. Silva. CNV has already started discussions with legal firms. The Fintech chamber to determine the implementation of the registry.
However, the impact of these regulations on the future of the Argentine market is yet to be assessed. Argentina ranks 15th in the world in terms of cryptocurrency market size.
As of now, users can be assured that this new regulation will not have an immediate effect on them. However, it is crucial for businesses operating in the crypto industry in Argentina to stay updated on the registration process and ensure compliance to continue their operations. The regulation in the crypto market from governments all around the world is expected to save retailers from the growing crypto scams.
Conclusion
New crypto regulations in Argentina are making global headlines as the Argentine government is likely to make registration mandatory for VASPs. Businesses failing to comply won’t be able to operate in the country. The move is expected to save retailers from growing crypto scams.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
