Key Takeaways
- Argentina mandates crypto platform registration in alignment with Financial Action Task Force recommendations.
- Regulation extends globally to any crypto operations within Argentina, impacting local and international entities.
- Criticism arises over the potential stifling of innovation and misalignment with President Milei's economic freedoms stance.
This development follows the election of the anarcho-capitalist and libertarian Javier Milei as the country's president, who had initially been thought to potentially boost Bitcoin adoption through his economic reforms.
The move towards stricter regulation comes in response to recommendations from the Financial Action Task Force (FATF) and aims to include businesses involved in a variety of crypto services, from buying and selling to lending and trading.
The new mandate, approved by the Argentine senate in March 2024, is not limited to companies based in Argentina but extends to any operating within its market. Roberto E. Silva, the president of the Comisión Nacional de Valores (CNV), emphasized the need of registration for operation within the country, indicating a significant shift towards the oversight of virtual assets.
The regulation has sparked controversy and criticism from local crypto enthusiasts and experts. Manuel Ferrari, a member of an Argentinian NGO and co-founder of the Money On Chain protocol, criticized the registry as nonsensical and detrimental, arguing that Bitcoin, as money, should not be subjected to securities regulation. He views this move as potentially benefiting state bureaucracy at the expense of innovation and the cryptocurrency industry's growth.
Nicolas Bourbon, co-founder of the KamiPay payments solution, echoed the sentiment that President Milei's administration does not specifically support Bitcoin but rather the freedom of currency choice. Both Ferrari and Bourbon believe that the regulation is more about complying with international standards rather than affecting cryptocurrency users or the market in the short term.
Despite these regulatory changes, Argentina remains a significant player in the global cryptocurrency market, ranking 15th according to Chainalysis' Global Crypto Adoption Index. The future impact of this new registration requirement on Argentina's cryptocurrency landscape remains to be seen, but the immediate effects on individual users appear minimal.
