Argentina considers new crypto regulations
While CNV President Roberto Silva highlights the need to balance regulation with innovation, industry leaders express concerns about potential overregulation that could hinder growth and push users towards unregulated markets.
Members of Argentina’s cryptocurrency industry have voiced their concerns regarding a new draft that seeks to impose restrictions on crypto institutions. The Argentine securities regulator (CNV) has announced a public consultation for a draft aimed at regulating virtual asset service providers (VASPs), which would require institutions to register with a minimum capital amount to operate within the country.
If approved, the proposed regulations would mandate crypto companies to disclose their agreements with third parties and customers while also establishing measures to combat money laundering and terrorism financing. CNV President Roberto Silva has emphasised that the intention is to balance regulation with the need for innovation within the sector.
A notable aspect of the draft is the proposed minimum capital requirement of nearly $173,000 for institutions involved in the transfer, custody, and management of virtual assets. While individual users will still be able to engage in fiat-to-crypto and crypto-to-crypto exchanges without forming a company, industry members caution that the regulations must be conducive to growth.
Industry leaders like Carlos Peralta of Bitso Argentina and Juan Pablo Fridenberg of Lemon have expressed support for regulations that encourage local exchanges to operate efficiently, highlighting the importance of a thoughtful approach to regulation that avoids driving users to unregulated markets.
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