Argentina Prepares Regulations To Set Crypto Service Providers

Argentina prepares a decree to regulate crypto companies in the country. (Photo; Doc. MyDigitalMoney)

JAKARTA Argentina plans to issue regulations for crypto service providers through the president's decree. This step was taken to increase supervision and control of this sector, as well as to meet international standards in preventing money laundering.

According to local media reports, Argentine President Javier Milei is preparing to issue an emergency decree in the near future to create a framework that will regulate crypto service provider operations, such as exchanges, wallets, and trading platforms. The decree will bring them under the supervision of the National Securities Supervisory Agency (CNV), which will be responsible for licensing and supervising their compliance.

Milei, known as a crypto and far-right libertarian supporter, said the regulation aims to keep Argentina out of the gray list of Financial Action Task Force (FATF), an intergovernmental organization setting global standards for the prevention of money laundering and terrorism financing. Argentina has been on the list from 2010 to 2014 due to loose money laundering policies.

Argentina will receive a visit from the FATF in March 2024, which will assess the steps the country has taken to increase transparency and accountability in the financial sector, including the crypto sector. Milei hopes that by issuing the decree, Argentina will be able to demonstrate its commitment to comply with FATF standards and avoid sanctions or criticism.

Under the new decree, all crypto service providers operating in Argentina, both domestic and foreign-based, must register with CNV and obtain a license to resume their activities. In addition, they must provide information to national financial intelligence units, which will monitor their transactions and report suspicious or suspicious activities.

Crypto service providers must also follow the rules set by CNV, such as having minimum capital, maintaining records, implementing risk management policies, and protecting consumer rights and interests. They also have to pay the appropriate taxes and fees, as well as report their performance and security incidents on a regular basis.

This decree is expected to provide legal certainty and protection for crypto users in Argentina, whose number is estimated to reach 2 million people, according to data from Statista. Argentina is one of the countries with the highest crypto adoption in the world, mainly due to high inflation, capital control, and a prolonged economic crisis.