Argentina Introduces Stricter Regulations for Cryptocurrency Providers

The legislation implementing new rules for virtual asset service providers (VASPs) operating within the nation was overwhelmingly enacted by the Argentine Senate on March 14, during a crucial session. With the aim of guaranteeing adherence to anti-money laundering regulations, these modifications aim to improve the current regulatory structure for cryptocurrency exchanges and other crypto-related businesses.

According to the revisions, a VASP register would be created and managed by the CNV, Argentina’s securities regulator. To further improve transparency, traceability, and user and operational monitoring, the Act also requires these organizations to fulfill a number of other requirements. One such need is the provision of personal customer data.

Response to Global Recommendations

The enactment of this law is in response to recommendations from the Financial Action Task Force (FATF), the global money-laundering watchdog. These measures aim to strengthen Argentina’s anti-money laundering efforts and align with international standards.

Because of the importance of the bill, there have been rumors that it may be passed by an executive order from the president. This happens after the bill, which has been pending since April, was adopted by the lower house of Congress.

The Argentine bitcoin community is worried about the possibility of this bill being passed. Some worry that these regulations may cause the industry to consolidate, with bigger VASPs being better able to abide by the strict guidelines and therefore pushing out smaller exchanges and peer-to-peer marketplaces.