Argentina’s securities regulator finalized regulations for virtual asset service providers (VASPs) to ensure transparency and user protection. The new rules, effective from March 13, impose obligations such as registration, cybersecurity, asset custody, and anti-money laundering. Registered entities must comply by specified deadlines or face operational bans.
The National Securities Commission (CNV) of Argentina has completed the regulations for virtual asset service providers (VASPs), defining codes of conduct and custody requirements specifically for cryptocurrency exchanges and associated platforms. These regulations, published on March 13 under General Resolution No. 1058, establish strict obligations for VASPs, including registration, cybersecurity, asset custody, anti-money laundering measures, and risk disclosure.
The main purpose of the new regulations is to ensure transparency, stability, and user protection within the cryptocurrency ecosystem. Argentine tax lawyer, Diego Fraga, noted that these guidelines necessitate the separation of client funds from company funds, as well as annual audits and monthly reporting to the CNV.
Starting in 2024, all VASPs must register with the virtual asset service providers registry, known as PSAV. The rules stipulate that noncompliance can result in the revocation of registrations, and unregistered operators may be legally blocked from operating. Registered individuals have until July 1 to meet the new requirements, while Argentine companies need to comply by August 1 and foreign companies by September 1.
Roberto E. Silva, the CNV’s president, indicated that those failing to adhere to these requirements would be barred from operating in Argentina. The push for clear crypto regulations intensified after registration requirements were introduced last year, coinciding with a significant rise in crypto adoption due to the rapid devaluation of the Argentine peso.
By mid-2024, Argentina experienced a surge in crypto usage, particularly towards stablecoins such as Tether’s USDt, leading to reports that the country had surpassed Brazil in crypto inflows, amassing approximately $91 billion from July 2023 to June 2024. This positive trend persists despite recent controversies, including the LIBRA memecoin scandal involving President Javier Milei, where his endorsement preceded a notable drop in its value.
In summary, Argentina’s CNV has formalized comprehensive regulations for VASPs that emphasize user protection, transparency, and adherence to strict conduct protocols. These developments come amid a favorable environment for crypto adoption driven by economic factors, positioning Argentina as a leader in Latin America’s cryptocurrency landscape despite recent scandals. Compliance with these regulations is crucial for the continued operation of VASPs within the country.
Original Source: cointelegraph.com
