Regulation

Argentina implements new regulations for companies offering crypto services

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Argentina implements new regulations for companies offering crypto services

The Argentine government has started enforcing regulations to allow cryptocurrency exchanges to operate legally in the country. The Comisión Nacional de Valores (CNV), Argentina’s securities regulator, announcement that virtual asset service providers must adhere to the recommendations of the Financial Action Task Force (FATF). As part of the country’s anti-money laundering (AML) and counter-terrorist financing (CFT) reforms, certain companies offering crypto-related services are required to register with the Argentine government.

Roberto Silva, president of CNV, stressed that virtual asset service providers who do not register “will not be able to operate in the country.” The implementation of these laws affecting crypto providers in Argentina accelerated when the country’s Senate approved changes on March 14 aimed at preventing money laundering and terrorist financing.

The proposed changes to Argentina’s laws regarding cryptocurrency users would have been introduced before the election of Javier Milei as president in November 2023. Milei was then praised by many cryptocurrency enthusiasts due to his apparently positive stance towards of Bitcoin. However, the introduction of FATF requirements has raised concerns about the future of digital assets in Argentina.

The impact of these requirements on businesses operating in Argentina and customers seeking to use their services remains unclear. Strike, a popular app in Argentina for facilitating Bitcoin payments via the Lightning Network, has reportedly disabled the ability for residents to send fiat to bank accounts.

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