Key Points
- Bitcoin advocate Max Keiser criticizes Argentina’s new Bitcoin regulatory regime, calling it a major mistake by President Milei.
- Argentina’s new regulations have drawn criticism from the crypto community, signaling a shift in stance towards cryptocurrencies.
Max Keiser, a well-known Bitcoin supporter, has expressed his dissatisfaction with Argentina’s new Bitcoin regulatory regime on a social media platform. He believes that President Milei’s decision displays a lack of understanding about Bitcoin, which could lead to adverse repercussions.
Milei, who was seen as Bitcoin-friendly prior to the presidential election, secured a historic victory in Argentina’s presidential run-off election in November 2023. His inauguration in December 2023 was seen as a potential turning point for Argentine politics.
Milei’s Economic Plans and Bitcoin Adoption
There was a sense of hopeful anticipation for Milei’s plans to reconstruct the national economy and promote the adoption of cryptocurrency. This optimism was fueled by the belief that Bitcoin could be a solution to Argentina’s inflation problems. Before the end of 2023, Bitcoin-denominated contracts were legally recognized in Argentina, meaning that Bitcoin could be the specified currency in contractual agreements.
However, a few months into his presidency, Milei’s stance appeared to shift. In late March, Argentina’s Comisión Nacional de Valores announced the implementation of a new mandatory Registry of Virtual Asset Service Providers, bringing more regulation for entities dealing with crypto assets.
Crypto Community Reacts to Milei’s Policy
This development drew criticism from figures like Max Keiser and members of the cryptocurrency community. One such critic is Neo (@21Millones_BTC), who expressed disappointment in Milei’s perceived policy reversal, emphasizing the impact of the new regulations on Bitcoin adoption in Argentina.
Neo claims that he used to pay contractors in Argentina using Bitcoin via Lightning Network, but since the new government took office, custodial apps have stopped allowing BTC transfers, indicating a shift away from freedom in the cryptocurrency space.
Manuel Ferrari, an Argentinian NGO Directive member and co-founder of the Money On Chain protocol, described the new regulation as a terrible idea in an interview with Forbes. He stated that it was nonsensical to have a registry for buying and selling Bitcoin, as Bitcoin is money, not a security.
Some analysts have agreed with Keiser’s assessment, warning that Argentina could face economic consequences if appropriate measures are not taken. They will continue to monitor how the crypto regulation moves will be implemented, particularly as Texas Bitcoin miners have recently partnered with Argentinian firms for sustainable mining operations.
