In an announcement published on Wednesday, Argentina's National Securities Commission (CNV) issued new regulations for the special regime of Open Mutual Funds (FCI), through which investment in Bitcoin and cryptocurrencies is enabled within these funds.
"Six years after the passing of Law No. 27,440, which was put out to public consultation through RG No. 765, it is a pleasure to announce new investment options that were provided for in this innovative law," said Roberto Silva, the president of the CNV.
In addition, the president of the CNV indicated that Bitcoin and Ethereum, among others, can be traded in the capital market, emphasizing that the new regulations allow three investment alternatives, provided that a series of requirements are met.
It is worth noting that the recent regulations enable three investment alternatives, including spot exchange-traded funds (ETFs) that passively replicate equity indices, cryptocurrencies or commodities. On the other hand, the investment alternative in external assets without applying the 25% limit and in local assets was enabled, "relaxing diversification limits."
Likewise, the Argentine National Securities Commission indicated that this recent initiative aims to maintain the trend towards international markets and increase the offer of FCI alternatives. Additionally, the CNV indicated that the creation of "ETF CEDEARs" will be enabled, which are a way of investing in international markets in a diversified manner and with a minimum investment.
In this way, access to the crypto market is simplified for Argentines, allowing them to operate directly with stockbrokers in the country and avoiding crypto exchanges.
Argentina moves towards cryptocurrency investment funds
However, despite the recent regulations, Argentines will still have to wait to start investing. This is because, to date, no investment fund with exposure to Bitcoin or cryptocurrencies has been launched in Argentina.
“This development is great news for the crypto industry, as it can stimulate the adoption of these assets by attracting traditional investors and expanding the ecosystem gradually and safely. In addition, it complements recent decisions, such as the inclusion of cryptocurrencies in corporate assets, the creation of the Virtual Asset Service Providers registry, and the incorporation of crypto assets in money laundering processes,” said Carlos Peralta, Head of Public Affairs at Bitso Argentina.
Additionally, according to Martín Caranta, partner at Lisicki, Litvin & Asociados, mutual funds established abroad were already accessible before, but were subject to income tax in Argentina at 15%. As a result, with the new regulations, investors' profits would be exempt from taxes, attracting even more interest.
On the other hand, according to the first half report by “Bitso” titled “Crypto Panorama in Latin America”, Argentina experienced a 16% year-on-year growth in its number of cryptocurrency users. However, Argentina is still behind Colombia and Brazil, with a year-on-year growth of 17% and 18%, respectively.
In addition, the Bitso report pointed out that the group with the highest adoption of cryptocurrencies continues to be young people between 25 and 34 years old, showing a strong inclination of the new generations towards digital finance. It should be noted that this age segment, characterized by greater exposure to technology and lower risk aversion, remains the main driver of cryptocurrency adoption in Argentina.
