Regulation
Argentina to regulate booming cryptocurrency market
Alex Dovbnia
Argentina moves to regulate booming cryptocurrency sector
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According to a recent report Argentina is set to rein in the growing cryptocurrency market with a new law, according to Reuters.
This measure aims to combat illegal activities made possible by cryptocurrencies.
The new law provides tax exemptions for those who declare up to $100,000 in digital assets.
Due to concerns about money laundering activities, Argentina has begun to face increasing pressure from the Financial Action Task Force (FATF), a “policy-making body” that aims to combat financial crimes.
To avoid being on the dreaded FATF grey list, Argentina has rushed to regulate digital assets. Registering cryptocurrencies is supposed to be the first step towards regulation.
Argentina has long been known as a major cryptocurrency hub due to its economic woes. In fact, it recorded over $85 billion in crypto transactions in 2023.
Last November, Argentina elected pro-Bitcoin libertarian Javier Milei as its new president.
Recently, some publications reported that Argentina was considering making Bitcoin a legal tender under Milei’s leadership. However, this information was wrong and the president’s comments were misinterpreted.
For now, it seems that Argentina is focused on bringing regulatory clarity to the cryptocurrency sector rather than taking such drastic steps as adopting the Bitcoin standard.
The idea of a country as important as Argentina adopting Bitcoin as its official currency seems too far-fetched, despite the pro-crypto statements of its libertarian leader. The country’s central bank is currently facing problems such as devaluation and inflation.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has written over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.