coinculture.com
The top financial regulatory authority in Argentina has announced intentions to oversee the country’s cryptocurrency service providers, aiming to establish supervision over its crypto trading platforms.
The National Securities Commission (CNV) disclosed on March 18 its strategy to regulate these platforms, including the creation of a national registry and the requirement for operating licences.
This move by the CNV follows the recent approval by the Argentine Senate to establish a registry for cryptocurrency service providers, reportedly in response to pressure from the Financial Action Task Force (FATF). The CNV emphasised its commitment to implementing measures to prevent money laundering and counter the financing of terrorism, as mandated by law.
In the wake of a visit from FATF officials, Argentina faces the risk of being placed on the organisation’s “grey list” if it fails to effectively regulate its crypto sector. The surge in crypto ownership in Argentina, driven by economic instability and inflation, has drawn attention to the need for regulatory oversight.
President Javier Milei’s economic policies, including austerity measures and the devaluation of the peso, have contributed to a lack of confidence in the national currency, prompting citizens to turn to cryptocurrencies as a hedge against inflation.
Argentina’s monthly inflation slowed for a second consecutive time as President Javier Milei’s austerity measures push the economy into recession https://t.co/eLXX06NSVE
— Bloomberg Markets (@markets) March 12, 2024
However, with restrictions on USD purchases and the IMF’s influence on Argentina’s economic stability, regulatory compliance is crucial to avoid repercussions.
Critics of the new regulations warn that they could limit access to the crypto market, which has served as a haven for many amid economic uncertainties. Ricardo Mihura, president of the crypto advocacy group Bitcoin Argentina, cautioned that these measures could impede the freedom and accessibility that cryptocurrencies have provided to savers and independent workers in Argentina.