Argentina’s National Securities Commission has finalized regulations for virtual asset service providers (VASPs), focusing on conduct and custody standards. Key requirements include registration, cybersecurity, and risk disclosure, aimed at ensuring transparency and user protection. Compliance deadlines are set, with significant enforcement measures for noncompliance. Crypto adoption in Argentina continues to rise despite recent scandals.
Argentina’s National Securities Commission (CNV) has established finalized regulations for virtual asset service providers (VASPs), which govern the conduct and custody standards for cryptocurrency exchanges and platforms engaged in digital asset transactions. Announced on March 13, General Resolution No. 1058 outlines the obligations for VASPs regarding registration, cybersecurity measures, asset custody, money laundering prevention, and risk disclosure, aiming to enhance transparency and user protection within the crypto ecosystem.
As part of these guidelines, Argentine tax lawyer Diego Fraga indicated that VASPs must maintain a clear separation between company funds and client funds, conduct annual audits, and provide monthly reports to the CNV. Starting in 2024, any VASP must be registered with the PSAV registry and may face revocation of registration for noncompliance or blockages through court orders for unregistered operations.
Registered individuals have until July 1 to comply with the new regulations, while companies incorporated locally have until August 1, and foreign entities until September 1. Roberto E. Silva, President of CNV, stated, “Those who do not comply with the established requirements and deadlines will not be able to operate in Argentina.”
The CNV’s call for clearer regulatory frameworks stems from Argentina’s rising crypto landscape, particularly following the implementation of registration requirements for crypto issuers last year. This regulatory shift coincided with a significant increase in crypto adoption, driven by the depreciation of the Argentine peso, leading to a pronounced interest in stablecoins, particularly Tether’s USDt (USDT).
By mid-2024, Argentina reportedly surpassed Brazil in crypto inflows, amassing approximately $91 billion between July 2023 and June 2024, as documented in an October Chainalysis report. Despite recent controversies surrounding the LIBRA memecoin scandal, which implicated President Javier Milei, crypto adoption trends in Argentina remain encouraging, with locals increasingly turning to digital assets for financial stability.
In conclusion, Argentina’s CNV has introduced stringent regulations for virtual asset service providers to enhance the integrity of its cryptocurrency market. The rules necessitate rigorous compliance, including fund separation and regular auditing, with substantial deadlines for registration and adherence. Coinciding with a notable increase in crypto adoption, these regulations aim to stabilize the market and bolster user protections amidst a backdrop of economic volatility and unforeseen controversies.
Original Source: cointelegraph.com
