Argentina Implements Compulsory Registry for Cryptocurrency Exchanges Amid Regulatory Transformation
Argentina has introduced a compulsory registry for Bitcoin and cryptocurrency exchanges, as announced by the country’s securities regulator, Comisión Nacional de Valores (CNV), in order to better regulate the cryptocurrency industry.
Under the new directive, any entity involved in activities such as buying, selling, sending, receiving, lending, or trading cryptocurrencies must register with the relevant authorities. This requirement applies to both domestic and foreign-based companies operating within the Argentine market.
This move comes as a surprise to many, as it was initially expected that the newly elected leader, Javier Milei, an anarcho-capitalist and libertarian, would promote the adoption of Bitcoin and cryptocurrencies in Argentina.
However, instead of encouraging adoption, the government has opted for stricter regulations in the crypto space. In late March, the Argentine Senate approved amendments to the country’s regulatory framework to include the new registration requirement, aligning with the recommendations of the Financial Action Task Force.
Roberto E. Silva, the president of the CNV, emphasized the importance of compliance, stating that unregistered entities will not be allowed to operate in the country.
After the announcement, the CNV held a meeting with major legal firms and the Fintech chamber to discuss the implementation of the registry, with representatives from several local companies in attendance.
The decision has sparked mixed reactions within the crypto community, with concerns about the impact on market dynamics and innovation. Manuel Ferrari, a member of an Argentinian NGO directive and co-founder of the Money On Chain protocol, criticized the registry, arguing that it misunderstands the nature of Bitcoin and could burden the industry with unnecessary regulation.
Nicolas Bourbon, co-founder of the KamiPay payments solution, supported Ferrari’s perspective, stating that Milei’s administration does not favor Bitcoin over other currencies and values currency freedom. Both Ferrari and Bourbon believe that this regulatory measure is aimed at appeasing international institutions rather than directly benefiting Argentinian citizens or the cryptocurrency sector.
The regulatory update comes at a time of significant cryptocurrency adoption in Argentina, driven by an inflation rate exceeding 270%. Argentinians are increasingly turning to Bitcoin and other digital currencies as a financial refuge, leading to an increase in legitimate transactions as well as scam activities. The CNV’s regulations aim to mitigate these risks without stifling innovation in the crypto space.
Argentina’s expansion in the global crypto exchange industry reflects its growing importance in the international crypto landscape. The launch of OKX provides Argentinians with broader access to digital assets and web3 technologies, offering a financial alternative amidst high inflation and the devaluation of the peso.
Furthermore, several provinces in Argentina have announced plans to create their own currencies as part of a broader economic strategy, including a 50% devaluation of the peso. While this allows local currencies to address financial challenges at the provincial level, it raises concerns about potential inflationary effects.
With the latest directive, Argentina seems poised to gain more market share in the country’s evolving crypto landscape. This regulatory shift is in line with other Latin American countries like El Salvador, where President Nayib Bukele announced in 2019 that the country would be adopting a Bitcoin denominated digital currency as a replacement for the US dollar.
