In a significant move impacting the cryptocurrency landscape, the Argentine government has mandated the establishment of a compulsory registry for businesses engaged in Bitcoin and other crypto transactions. This decision has sparked a wave of concern among critics who argue that it marks a departure from the country's previously more libertarian stance on digital currencies, despite the president's assurances to the contrary.
The legislative action taken on March 14 by Argentina's senate to pass the Registry of Virtual Asset Service Providers underscores the government's intensified focus on the crypto sector. This registry, officially announced by the National Securities Commission (CNV) on March 26, aims to catalog all entities involved in various crypto-related services within the nation, including the buying, selling, trading, lending, and transferring of cryptocurrencies. CNV President Roberto E. Silva emphasized that operating without registration would no longer be permissible.
The primary objective behind these regulations is to bolster adherence to anti-money laundering (AML) and anti-terrorist financing laws, aligning with global efforts to regulate the crypto space. However, the move has surprised many, particularly given President Javier Milei's libertarian views and his promotion of minimal government intervention, a stance seemingly at odds with the new regulatory measures.
The crypto community has reacted with dismay to this shift, noting Milei's previously expressed support for Bitcoin and its potential to challenge central banking systems. Despite Milei's lack of explicit pro-Bitcoin policies, his advocacy for Bitcoin as a reversion to private sector-led monetary systems had garnered him considerable goodwill among crypto proponents.
Critics of the registry, such as Manuel Ferrari, co-founder of the Money On Chain protocol, argue against the conflation of Bitcoin with traditional securities or financial instruments, highlighting the absurdity of such regulatory comparisons. This sentiment reflects the broader disagreement within the crypto sector regarding the appropriateness and impact of stringent regulations.
Furthermore, Argentina's recent legal adjustments to allow contracts and payments in any currency, including Bitcoin, underscore the country's evolving approach to financial transactions. This change, effective from December, comes as the Argentine peso faces severe inflation, prompting many citizens to turn to Bitcoin as a more stable store of value amidst soaring crypto valuations.
As Argentina embarks on this regulatory path, the global crypto community watches closely, evaluating the implications for the market's future and the balance between innovation and regulatory oversight in the digital currency domain.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
