By
Godfrey Benjamin
July 3rd, 2024
CNV chair Roberto E. Silva stated that the country “worked against the clock to advance compliance” efforts, aimed at preventing money laundering and terrorism financing.
As part of its attempt to boost market integrity, Argentina is releasing a national registry for crypto exchanges. As a result, Argentina‘s National Securities Commission (CNV) has launched its Virtual Asset Service Provider (VASP) registry after receiving applications from nearly a hundred legal entities and individuals.
As per the government announcement, the registry will accept new applications from all those interested in offering crypto trading services. However, these applicants would have to wait for registration confirmation before kickstarting their operations.
Furthermore, the Commission stated that the legal entities have submitted nearly 85 requests since the launch of the registry. Of them, 35 have successfully registered so far, among which four are foreign platforms.
Entities that have fulfilled the requirement to submit registration requests to the registry will be allowed to continue their operations in Argentina, while non-compliant entities will be prohibited from conducting activities until they are registered, according to the announcement.
Argentina initially introduced mandatory registry requirements for the crypto sector in late March. CNV chair Roberto E. Silva stated that the country “worked against the clock to advance compliance” efforts, aimed at preventing money laundering and terrorism financing.
Local Crypto Community Unhappy on Governmental Regulation
although the Argentinian government is undertaking a regulatory approach the local crypto community has expressed concerns over this. During a recent interview with Forbes, a member of the Argentinian NGO Directive Manuel Ferrari called this national registry a “terrible idea”.
He also argued that Bitcoin is money and not a security. Recently, Bitcoin maximalist Max Keiser also criticized Argentinian President Javier Millei for introducing Bitcoin regulations. He called it a major misstep adding that Milei’s lack of understanding of Bitcoin will ultimately lead to negative consequences.
Keiser states that he previously paid contractors in Argentina using Bitcoin through the Lightning Network. However, since the new government took office, custodial apps have stopped allowing BTC transfers, indicating a move away from freedom in the cryptocurrency space.
On the other hand, other crypto players are looking to expand their operations into Argentina, with Cardano’s Charles Hoskinson being one of them. Argentinians are increasingly turning to Bitcoin and other cryptocurrencies as a financial refuge, resulting in a surge in both legitimate transactions and scam activities. Consequently, the CNV’s regulations aim to mitigate these risks while fostering innovation in the crypto space.