Argentina to Introduce New Regulations for Cryptocurrency Companies
Date: 2024-10-22 Author: Gabriel Deangelo Categories: IN WORLD
Argentine authorities have begun drafting regulations for virtual asset service providers (VASPs). This week, the Argentine Securities Commission (CNV) published a draft that will soon be submitted for public consultation. If approved, the new law would force cryptocurrency companies to register with a certain amount of capital and comply with measures to prevent money laundering and terrorist financing.
The draft, called General Resolution 1.025, requires companies to disclose information about their contracts with customers and third parties. The implementation of new cybersecurity measures will be key to ensuring customer safety and asset security. This step is a logical continuation of previous initiatives regarding the creation of a VASP registry in the country.
The head of CNV, Roberto Silva, stressed that the main goal of the new legislation is not to hinder innovation in the sector, but to ensure its development in accordance with established laws. He also called on crypto exchanges to actively participate in the process of discussing and improving this project.
One of the key issues remains the requirement for minimum capital for companies engaged in cryptocurrencies. According to the draft, the amount for organizations providing services for the transfer and management of virtual assets will be about $ 173,000. At the same time, individuals will be able to participate in exchanges between fiat currencies and cryptocurrencies without registering their own company.
Representatives of the crypto industry expressed caution about the new measures, although they recognized the need for regulation. They believe that it should be balanced and not hinder the growth of companies.
Carlos Perelta, head of public affairs at Bitso Argentina, noted the importance of openly discussing the requirements for registration, as this contributes to financial inclusion and the creation of a more efficient financial system in the country.
Juan Pablo Fridenberg, CEO of one of Argentina’s largest exchanges, Lemon, also supports the need for regulation to allow exchanges to continue operating in the country. However, he cautioned against overly strict measures that could push users to switch to unregulated or international platforms.
Regulation is always an important step for companies, as it allows them to operate within the law and avoid uncertainty. However, it is important that legislation does not stifle the development of new technologies and innovations, but rather allows them to flourish.
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