Argentina’s securities regulator CNV has established regulations for virtual asset service providers (VASPs), emphasizing registration, cybersecurity, asset custody, and more, aimed at ensuring stability and user protection in the crypto ecosystem. Compliance deadlines have been set for registered entities, and noncompliance could result in operational bans. Despite recent scandals, crypto adoption continues to rise in Argentina amid economic challenges.
Argentina’s National Securities Commission (CNV) has finalized new regulations governing virtual asset service providers (VASPs) as of March 13, under General Resolution No. 1058. These regulations dictate required conduct codes and custody standards for cryptocurrency platforms engaged in digital transactions. VASPs are now obligated to adhere to registration, cybersecurity measures, asset custody protocols, money laundering prevention, and risk disclosures.
The principal aim of these rules is to enhance transparency, stability, and user protection within the cryptocurrency ecosystem. Diego Fraga, an Argentine tax lawyer, noted that guidelines now mandate the separation of company and client funds, alongside annual audits and monthly reports submitted to the CNV. Additionally, beginning in 2024, VASPs must register with the PSAV, and failure to comply may result in revoked registrations and court-ordered operational bans.
Registered individuals with the PSAV have until July 1 to meet compliance standards, while companies based in Argentina have until August 1, and foreign entities until September 1. CNV President Roberto E. Silva emphasized that non-compliant firms will be prohibited from operating in Argentina.
The urgency for clearer crypto regulations has intensified in the past year due to the CNV’s actions to impose registration obligations and categorize crypto issuers under securities laws. This regulatory shift coincides with increasing adoption of cryptocurrency amid the decline of the Argentine peso, leading users to seek stability in digital assets like Tether’s USDt (USDT).
A report by Chainalysis revealed that from July 2023 to June 2024, Argentina surpassed Brazil in crypto inflows, totaling approximately $91 billion. Despite the recent LIBRA scandal involving President Javier Milei, which raised concerns of a rug pull after he endorsed the memecoin before its value dropped, the trend towards crypto adoption in Argentina remains buoyant.
The enactment of regulations for VASPs by Argentina’s CNV signifies a move towards greater transparency and user protection in the cryptocurrency market. With mandatory compliance measures in place, including fund separation and ongoing reporting, the guidelines aim to foster a safer trading environment. Despite challenges such as the LIBRA scandal, enthusiasm for cryptocurrencies in Argentina continues to grow, reinforced by the country’s status as a leading market in Latin America for crypto inflows.
Original Source: cointelegraph.com
