Argentina to Introduce National Registry for Crypto Exchanges

As a researcher with experience in the crypto industry, I believe that Argentina’s decision to establish a national registry for crypto exchanges is a necessary step towards ensuring market integrity and preventing illegal activities such as money laundering and terrorism financing. The regulatory approach taken by the Argentinian government is a response to growing concerns over the increasing use of cryptocurrencies in illicit transactions, as well as the surge in both legitimate transactions and scam activities.

To enhance market transparency in Argentina, the country is establishing a national registry for crypto exchanges. Consequently, the Argentine National Securities Commission (CNV) has initiated this registry, named Virtual Asset Service Providers (VASP), following the submission of approximately one hundred applications from legal entities and individuals.

According to the official statement, individuals who wish to provide crypto trading services can submit applications to the registry. Once approved, they’ll receive a confirmation and may then begin their operations.

The Commission reported that over 85 registration requests have been received from legal entities since the registry was initiated. So far, approximately 35 of these applications have been processed and approved, with four being from foreign publishing platforms.

As a regulatory analyst, I would interpret this announcement as follows: Entities that have met the prerequisite of submitting registration requests to the Argentinean registry will be authorized to carry on with their operations. Conversely, entities that have failed to comply with this requirement will be barred from engaging in any activities until they complete the registration process.

Argentina implemented crypto registration rules toward the end of March as a first step. According to Roberto E. Silva, head of the National Census and Statistics Commission (CNV), Argentina expedited these measures to enhance compliance, focusing on the prevention of money laundering and terrorist financing activities.

Local Crypto Community Unhappy on Governmental Regulation

As an analyst, I’ve observed that while the Argentinian government is pursuing regulatory measures for cryptocurrencies, there have been expressions of concern from the local crypto community. In a recent interview with Forbes, Manuel Ferrari, a member of an Argentinian NGO, strongly criticized the proposed national registry, labeling it as a “terrible idea.”

Max Keiser, a prominent Bitcoin advocate, has voiced his opposition to Argentinian President Javier Millei’s recent Bitcoin regulations. According to Keiser, Bitcoin is indeed a form of money, and not a security. He believes that Millei’s actions are a significant mistake due to his apparent lack of knowledge about Bitcoin. The consequences of this misunderstanding could potentially be detrimental.

According to Keiser, he had previously made payments to contractors in Argentina using Bitcoin via the Lightning Network. But following the change in government, these custodial apps have ceased supporting Bitcoin transfers, which could be a sign of increasing regulatory control over cryptocurrencies.

Alternatively, some crypto industry players, including Cardano‘s Charles Hoskinson, are considering expanding their businesses into Argentina. With Argentinians increasingly relying on Bitcoin and other cryptocurrencies as a financial sanctuary, there has been a significant increase in both legitimate transactions and fraudulent activities. To address these risks while promoting innovation in the crypto sector, the CNV is developing regulations.

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2024-06-05 18:01