Argentine Government Enacts Crypto Firm Registration

The Argentine government has passed a new law that requires crypto firms to register with the Comisión Nacional de Valores (CNV), the country’s securities regulatory authority. The new regulations are designed to enhance the country’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework. The law, which came into effect on March 25, requires virtual asset service providers to register in accordance with AML and CFT guidelines from the Financial Action Task Force (FATF).

 

The Argentine government enacts crypto firm registration rules

 

The new registration requirement is aligned with the FATF’s standards and is aimed at containing the crypto market within the country’s boundaries. Virtual asset service providers who do not register will be unable to operate in the country. The CNV will oversee the registration process and ensure that virtual asset service providers comply with the new regulations. The new law represents a significant step forward in the regulation of cryptocurrencies in Argentina and is expected to have a positive impact on the country’s economy.

 

Key Takeaways

  • The Argentine government has passed a new law that requires crypto firms to register with the Comisión Nacional de Valores (CNV).
  • The new regulations are designed to enhance the country’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework.
  • The new law represents a significant step forward in the regulation of cryptocurrencies in Argentina and is expected to have a positive impact on the country’s economy.

 

Legislative Framework

Argentine government officials approve crypto firm registration

 

The Argentine government has recently passed a law that requires all virtual asset service providers to register with the Comisión Nacional de Valores (CNV), the country’s securities regulatory authority. The law was implemented on March 25, 2024, and is designed to enhance the country’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework.

Registration Requirements

Under the new law, virtual asset service providers must register with the CNV and comply with AML and CFT guidelines from the Financial Action Task Force (FATF). The CNV will oversee the registration process and ensure that all virtual asset service providers comply with the new regulations.

The planned change to Argentina’s legislation affecting cryptocurrency users occurred before Javier Milei won the country’s presidential election in November 2023. Many crypto supporters applauded Milei’s elevation at the time for his seeming pro-Bitcoin stance. However, the new law has been put in place to ensure that the country’s financial system remains secure and transparent.

Compliance and Enforcement

The new law will be enforced by the CNV, which will have the power to investigate and sanction any virtual asset service provider that fails to comply with the new regulations. The CNV will also have the power to revoke the registration of any virtual asset service provider that is found to be in breach of the new regulations.

Virtual asset service providers must ensure that they have adequate AML and CFT policies and procedures in place to comply with the new regulations. Failure to do so could result in significant financial penalties and damage to the reputation of the virtual asset service provider.

In summary, the new law passed by the Argentine government is designed to enhance the country’s AML and CFT framework by requiring all virtual asset service providers to register with the CNV and comply with FATF guidelines. The CNV will enforce the new regulations and ensure that all virtual asset service providers comply with the new requirements.

 

Impact on Crypto Firms

Argentine flag waves in front of government building as officials pass new crypto firm registration laws

Operational Adjustments

The implementation of the Argentine law requiring crypto firms to register in accordance with AML and CFT guidelines from FATF has had a significant impact on the operations of these firms. Virtual asset service providers must now comply with the new regulations designed to enhance the country’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework. This means that these firms must make operational adjustments to ensure that they meet the requirements of the new regulations.

One of the key operational adjustments that crypto firms must make is to implement new AML and CFT policies and procedures. These policies and procedures must be designed to detect and prevent money laundering and terrorist financing activities. Crypto firms must also conduct ongoing monitoring of their customers’ transactions and report any suspicious activities to the relevant authorities.

Industry Responses

The new regulations have been met with mixed responses from the crypto industry. While some firms have welcomed the regulations as a step towards greater legitimacy and recognition, others have expressed concerns about the potential impact on innovation and growth in the sector.

Some industry experts have argued that the new regulations may lead to increased compliance costs and reduced competitiveness for smaller firms. Others have suggested that the regulations may drive innovation and growth in the sector by promoting greater trust and confidence among investors and consumers.

Overall, the impact of the new regulations on the crypto industry remains to be seen. However, it is clear that crypto firms must make significant operational adjustments to comply with the new requirements.

By Jastra Kranjec

Jastra is an author at CryptoPresales. Over the years, she has worked in different fields of journalism and public relations, including politics, economy, crypto, and financial markets.