Argentina Introduces Compulsory Registration for Bitcoin and Cryptocurrency Trading
The government of Argentina is requiring all local crypto firms to register with its new regulatory body dedicated to the sector – or cease operations entirely.
On March 14, the nation’s senate passed legislation approving the Registry of Virtual Asset Service Providers, in accordance with recommendations from the Financial Action Task Force.
Increased Regulation in Argentina?
Argentina’s National Securities Commission (CNV) announced the establishment of the registry on March 26, stating that the regulations are necessary to “identify the individuals and entities that offer services related to cryptoassets in the country.”
This includes businesses that facilitate the buying, selling, trading, lending, sending, or receiving of cryptocurrency.
“Those who are not registered will not be allowed to operate in the country,” stated CNV President Roberto E. Silva.
The objective is to enhance compliance with anti-money laundering and counter-terrorism financing laws, a key focus of crypto regulators in the United States and other countries.
However, many in the crypto industry are surprised by Argentina’s strong shift towards regulation, as the country’s new leader, Javier Miliei, is known for advocating small-government libertarianism.
“Javier Miliei is taking a surprising stance contrary to what is expected from a ‘pro-bitcoin’ libertarian,” tweeted Bull Bitcoin CEO Francis Pouliot. “I find this change very confusing and out of character.”
The crypto community initially saw Miliei as an ally due to their shared view of central banking as a common adversary. Despite not explicitly endorsing pro-Bitcoin policies, Miliei has described Bitcoin’s rise as “the return of money to its original creator: the private sector.”
Bitcoin as Legal Tender
While stringent AML regulations in the crypto space are now common, Money On Chain protocol co-founder Manuel Ferrari criticized the creation of a registry for Bitcoin exchange platforms as a “bad idea.”
“Bitcoin is a form of money, not a security,” he told Forbes in an interview. “Requiring currency exchange platforms for dollars, euros, or gold to register with the CNV is nonsensical.”
Starting in December, Argentina’s foreign affairs minister confirmed the repeal of the country’s legal tender laws, allowing contracts and payments to be settled in any chosen currency – including Bitcoin.
Many Argentinians turned to Bitcoin last month as its value surged to new all-time highs above $70,000, while the country’s peso continues to depreciate rapidly, with an annual inflation rate of 276% as of February.
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