When anarcho-capitalist and liberal leader Javier Millay seizes power in Argentina in December 2023, his plan to rebuild the national economy and dollarize it will lead to Bitcoin BTC and other cryptocurrencies in the country. Many people felt that it would help spread the word. But months into his administration, more restrictions have been imposed. In late March, Argentina's National Financial Commission announced a new mandatory registration of virtual asset service providers for businesses handling crypto assets in the country.
Companies and individuals currently conducting such activities are required to comply with the registration approved by the Argentine Senate on March 14 as part of amendments to the current regulatory framework to respond to the recommendations of the Financial Action Task Force. It will be done. This new requirement affects companies that specialize in providing multiple services such as buying, selling, sending, receiving, lending, and trading cryptocurrencies. All providers must complete registration, and the regulation applies not only to locally-based companies, but also to companies operating in the market but based elsewhere.
CNV President Roberto E. Silva made it clear that “unregistered persons cannot operate in the country.” Following the announcement, the securities watchdog participated in a meeting with the country's leading law firms and the FinTech Chamber of Commerce regarding the implementation of the registry, which was also attended by representatives of local companies.
“It is a terrible idea to have a registry that allows people to buy and sell Bitcoin. Bitcoin is money, not a security. Dollar and euro exchange offices and shops that buy and sell gold need to register on the registry. It's just as wrong as not to be.'' CNV. That is complete nonsense,” Manuel Ferrari, Argentine NGO Directive member and co-founder of the Money on Chain Protocol, told me in an interview.
“This is in no one's interest, except perhaps a few state bureaucrats, a corps of lawyers, and some useless people in the 'compliance industry,'” Ferrari argued. For him, the measure falls short of the pro-Bitcoin position that many supported Milley, but he or his party did not present an initiative to Congress.
“Mr. Millais is not particularly 'pro-Bitcoin.' He respects the freedom of currencies and won't interfere if you want to use Bitcoin. But if you want to use stone or copper, he'll do the same. ”KamiPay payment solutions company said. – further explained founder Nicolas Bourbon. For both Ferrari and Bourbon, this is not a regulation that will affect users in the short term, but rather is aimed at meeting the demands of international organizations.
Argentina is the 15th largest cryptocurrency market in the world, according to Chainalies' Global Crypto Adoption Index Top 20. It is not yet clear what will happen next in the Argentine market, but users can remain calm as this new regulation will not have an immediate impact.
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