With the growing popularity of cryptocurrencies, Argentina has been progressive in adopting and regulating assets. Recently, The National Securities Commission (CNV) in Argentina informed a publishing house that it would soon establish and regulate requirements for crypto companies.
The jurisdiction of the concerned regulator, in this case, CNV over virtual asset providers, is specified in a reform of the money laundering prevention law that is being discussed in the Argentine Congress.
Sources suggest that if the law is passed, the CNV plans to consult all of those in the crypto ecosystem operating in the country to seek their input as it works to create regulations. An executive of the regulatory body said that:
The worst-case scenario is a regulation that cannot be implemented.
According to the proposed bill, the requirements that crypto companies will have to follow include the protection of users, the security and efficiency in the development of operations, the security of public savings, and the prevention of money laundering, among others.
The regulator said that the prime reason behind the new requirements for crypto companies is to comply with international standards required by the Financial Action Task Force, which is scheduled to evaluate in the country next year.
Argentina has been one of the biggest advocates of cryptocurrencies in recent years. In late August last year, Mendoza, a city in Argentina, also started accepting tax payments in several stablecoins, followed by the capital Buenos Aires allowing taxes in crypto very recently.
Last year in July, following a ministerial shuffle, the value of the Peso fell by almost 15% against stablecoins DAI and tether on several leading local exchanges. It was observed that the Argentines purchased between two and three times more than the number of stablecoins they usually purchased. However, the government didn’t appreciate this move by the citizens using cryptocurrencies as a hedge.
In December, an Argentine province named San Luis began incorporating blockchain-based technology as part of its modernization drive.
A bill titled “Financial Innovation for Investment and Social Economic Development” was recently approved by the province’s legislators. It introduces blockchain as a tool to potentiate the development of several fields in the province, including generating value and streamlining auditing procedures. The bill also permits the province to issue stablecoins up to 2% of its yearly budget. The law establishes that these assets will be transferable between parties, but it does not specify the chain on which they would be issued.