Argentina Implements Mandatory Crypto Exchange Registry

In a regulatory shift, Argentina’s CNV introduces a registry to oversee crypto exchanges, aiming to align with international standards amid rising crypto adoption.
Argentina Legalizes Contract Agreements In Cryptocurrencies And Other Units
Buenos Aires Argentina
  • Argentina’s CNV mandates crypto exchanges to register, affecting both local and international entities.
  • The move comes under the administration of Javier Milei, countering initial expectations of a crypto-friendly regime.
  • The registry aims to combat inflation and scam activities while fostering a secure crypto environment.

The Comisión Nacional de Valores (CNV) announced this move to enhance oversight in the booming cryptocurrency industry.

This requirement, effective from late March 2024, obliges entities engaged in various crypto activities to register, impacting both Argentine-based and international operators within its market.

The decision aligns with the Financial Action Task Force’s (FATF) recommendations and the Argentine Senate’s recent legislative amendments, despite the libertarian inclinations of President Javier Milei, who took office in December 2023.

The regulatory update seeks to balance innovation with the need for compliance, as noted by CNV President Roberto E. Silva. Non-registered entities will be barred from operating in Argentina, signaling a significant policy shift from the initial laissez-faire expectations.

Criticism has emerged from within the crypto community, with Manuel Ferrari, co-founder of Money On Chain, and Nicolas Bourbon of KamiPay payments solution, voicing concerns over the registry’s implications. They argue it misconstrues Bitcoin’s nature and might serve more to appease international bodies than to benefit Argentinians or the crypto sector.

This regulatory step occurs amid Argentina’s grappling with an inflation rate exceeding 270%, propelling a surge in cryptocurrency adoption for financial refuge.

The establishment of the Registro de Proveedores de Servicios de Activos Virtuales (PSAV) marks a significant regulatory advance.  Detailed in the RG N° 994, this move is part of Argentina’s compliance with international standards, including FATF’s Recommendation 15 and the Anti-Money Laundering laws.

The PSAV’s creation, prompted by the need to combat money laundering and terrorism financing, showcases Argentina’s commitment to a structured and safe crypto market, reflecting broader trends in Latin America’s approach to cryptocurrency regulation.

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