Bitcoin Bull Max Keiser Slams Argentina’s New Bitcoin Regulatory Regime

On social media site X, Keiser voiced his disagreement with Milei’s choice, calling it a significant mistake. According to him, Milei’s limited knowledge of Bitcoin could result in unfavorable outcomes later on.

Javier Milei makes his first major mistake.

He never took the time to understand #Bitcoin, now he’ll suffer the consequences.

— Max Keiser (@maxkeiser) April 1, 2024

During the presidential election leading up to November 19, 2023, Milei was perceived as having a favorable stance towards Bitcoin. He went on to win an unprecedented victory in Argentina’s run-off election against Sergio Massa, securing 55% of the votes. At his inauguration on December 10, 2023, many believed this marked a significant shift in Argentine politics.

There was optimistic expectation towards his proposals for revitalizing the country’s economy and encouraging the use of cryptocurrencies, particularly Bitcoin. This is due to the belief that Bitcoin may offer a solution to Argentina’s long-standing inflation issues. Notably, prior to last Christmas, Argentine law acknowledged Bitcoin contracts, enabling locals to draft agreements where Bitcoin serves as the specified currency.

During the initial stages of his presidency, indications of a change in position began to surface. In March late in the year, Argentina’s Securities and Exchange Commission (CNV) unveiled plans for a new mandatory registry for Virtual Asset Service Providers. This regulatory move signified tighter control over crypto asset operations within the nation.

Keiser and Crypto Community Disapproves of Milei’s Policy

Critics such as Max Keiser and Neo @21Milliones_BTC from the cryptocurrency community have voiced their disapproval towards this recent development. Neo, in particular, has expressed his disappointment over what he sees as a U-turn by Milei, highlighting the potential negative effects of new regulations on Bitcoin’s adoption in Argentina.

The individual asserts that prior to the current administration, he would regularly make payments to contractors in Argentina using Bitcoin and the Lightning Network. However, since the new government has come into power, these custodial apps have stopped supporting Bitcoin transfers, indicating a potential move towards less cryptocurrency autonomy.

In the same vein, Manuel Ferrari, a member of Directive at Argentinian NGO and co-founder of Money On Chain, shares his disapproval of the new regulation in an interview with Forbes, labeling it a poorly thought-out concept.

“Creating a registry for buying and selling Bitcoin is a bad proposition. Bitcoin functions as money, not a security. Such an arrangement would be equally misguided as if we required dollar or euro exchange houses or gold shops to register with the CNV. This notion is nonsensical.”

Certain analysts have echoed Keiser’s warning that if Argentina does not take necessary actions, it may face economic repercussions. These experts are closely monitoring the progress of crypto regulations in Argentina, given the recent partnership between Texas Bitcoin miners and Argentinian companies for eco-friendly mining projects.

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2024-04-02 14:57