Key Points
- Argentina’s National Securities Commission (CNV) has initiated a national registry for crypto exchanges to enhance market integrity.
- The local crypto community in Argentina has expressed concerns over this new regulation.
Argentina is making strides to improve the integrity of its market by launching a national registry for crypto exchanges. This initiative by Argentina’s National Securities Commission (CNV) came into effect after receiving applications from almost a hundred legal entities and individuals.
According to the government announcement, the registry will be open to new applications from those interested in providing crypto trading services. However, these applicants must wait for registration confirmation before they can commence their operations.
Registration Requests and Compliance
The Commission revealed that nearly 85 requests have been submitted by legal entities since the registry’s inception. Of these, 35 have been successfully registered, including four foreign platforms.
Entities that have met the requirement to submit registration requests to the registry will be allowed to continue their operations in Argentina. However, those that have failed to comply will be barred from conducting activities until they are registered, as per the announcement.
Argentina introduced compulsory registry requirements for the crypto sector in late March. Roberto E. Silva, the CNV chair, stated that the country had been working diligently to advance compliance efforts. These efforts aim to prevent money laundering and terrorism financing.
Local Crypto Community’s Reaction
Despite the Argentinian government’s regulatory approach, the local crypto community has expressed concerns. In a recent interview with Forbes, Manuel Ferrari, a member of the Argentinian NGO Directive, labelled this national registry a “terrible idea”.
Ferrari also stated that Bitcoin is money and not a security. Max Keiser, a Bitcoin maximalist, recently criticized Argentinian President Javier Millei for introducing Bitcoin regulations, labelling it a significant misstep. Keiser warned that Millei’s lack of understanding of Bitcoin could lead to negative consequences.
Keiser revealed that he had previously paid contractors in Argentina using Bitcoin through the Lightning Network. However, since the new government assumed office, custodial apps have stopped allowing BTC transfers, indicating a shift away from freedom in the cryptocurrency space.
On the other hand, other crypto players are looking to expand their operations into Argentina. Charles Hoskinson of Cardano is one such individual. Argentinians are increasingly turning to Bitcoin and other cryptocurrencies as a financial refuge, resulting in an increase in both legitimate transactions and scam activities. Consequently, the CNV’s regulations aim to mitigate these risks while fostering innovation in the crypto space.
