Argentina Establishes Regulations for Cryptocurrency Companies

To combat cryptocurrency fraud and ensure compliance with international standards, Argentina’s National Securities Commission (CNV) is taking steps to regulate virtual asset service providers operating in the country.

Background

The move comes as a reform of the money laundering prevention law is being discussed in Congress. The CNV plans to consult with all cryptocurrency companies operating in Argentina to gather input on creating regulations that balance security and efficiency with user protection and anti-money laundering measures.

Proposed Regulations

Under the proposed law, crypto companies will be required to meet certain standards:

• Protect users’ interests
• Ensure the security of public savings
• Prevent money laundering
• Maintain efficient operations

The main driver behind these new requirements is Argentina’s upcoming evaluation by the Financial Action Task Force (FATF) in 2024, which will assess the country’s compliance with international anti-money laundering standards.

Goals

The move aims to ensure that cryptocurrency companies operating in Argentina meet the same high standards as financial institutions and prevent fraud from occurring. By establishing regulations for virtual asset service providers, the CNV hopes to:

• Prevent fraudulent activities
• Protect users’ interests
• Ensure compliance with international standards
• Maintain a secure and efficient financial system

Outlook

While the proposed regulations are a step in the right direction, it remains to be seen whether they will become a reality. The reform of the money laundering prevention law is still under discussion, and only time will tell if these new requirements will be implemented.