Crypto Firms in Argentina Now Subject to Registration Requirements

Argentina’s government is actively setting in motion requirements for cryptocurrency exchanges to operate legitimately within its jurisdiction.

Announced on March 25, the country’s Comisión Nacional de Valores (CNV), analogous to a securities regulatory body, outlined that virtual asset service providers must now align with recommendations from the Financial Action Task Force (FATF).

JUST IN: 🇦🇷 Argentina Unveiled Mandatory Registry For #Bitcoin And Crypto Platforms 👀

"Those who are not registered will not be able to operate in the country." – Comisión Nacional de Valores President, Roberto E. Silvahttps://t.co/7JwnZXdnJF pic.twitter.com/AIyeW5YqXE

— Simply Bitcoin (@SimplyBitcoinTV) April 1, 2024

This move necessitates certain crypto service providers to register with the Argentine government, marking a significant step in the reform of the nation’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.

The drive towards regulating crypto providers gained momentum on March 14, following the Senate’s approval to amend laws targeting money laundering and terrorism financing prevention.

CNV President Roberto Silva explicitly stated that unregistered virtual asset service providers would be barred from operating within Argentina.

People going crazy about the CNV (local SEC) oversight of crypto exchanges in Argentina.

Literally this is the case in almost all countries, unfortunately. Money transmitting businesses now have to register. Argentina was just lucky to have a non-regulated market for so long. https://t.co/lT5thokuKD

— BowTiedMara (@BowTiedMara) April 2, 2024

This regulatory shift precedes the election of Javier Milei as Argentina’s president in November 2023.

Milei, celebrated by many in the crypto community for his apparent pro-Bitcoin stance, now sees the implementation of FATF recommendations sparking concerns regarding the future of digital assets in the country.

Javier Milei makes his first major mistake.

He never took the time to understand #Bitcoin, now he’ll suffer the consequences. https://t.co/P2arqfxrE2

— Max Keiser (@maxkeiser) April 1, 2024

Despite these apprehensions, the demand for Bitcoin in Argentina has soared, reaching a peak not seen in nearly two years.

Recent reports have highlighted disruptions in crypto-based financial activities; users of Strike, a popular app in Argentina for Bitcoin transactions via the Lightning network, found themselves unable to transfer fiat to bank accounts.

Guess what: custodial Lightning wallet Strike doesn't work in Argentina anymore. Because it was always a bank LARPing as decentralized crypto. 🤦‍♂️

They lied to you that Lightning was going to fix everything, they lied to you that you were actually using Lightning so they could… pic.twitter.com/ipqC8AG3zI

— Joel Valenzuela (@TheDesertLynx) April 2, 2024

The full impact of the new requirements on local businesses and consumers remains uncertain.

However, in December 2023, Argentina’s foreign affairs minister mentioned that contracts could now be settled using Bitcoin and other cryptocurrencies.

BREAKING 🫵😹 NEWS : Argentina Unveiled Mandatory Registry For Bitcoin And Crypto Platforms. https://t.co/eYwQ8tBOkc

— Jason A. Williams (@GoingParabolic) April 1, 2024

Amid these developments, President Milei made a public appearance on April 2, speaking at a ceremony commemorating Malvinas Day, which honors the lives lost during the Falklands War in 1982.

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