Argentina Establishes New Regulations for Virtual Asset Service Providers
Argentina’s CNV has implemented new regulations for virtual asset service providers, which include requirements for registration, cybersecurity, and asset custody. The regulations aim to enhance user protection and ensure transparency within the cryptocurrency ecosystem. VASPs must comply with these rules by set deadlines to continue operating legally in Argentina.
Argentina’s National Securities Commission (CNV) has finalized comprehensive regulations for virtual asset service providers (VASPs), which aim to enhance the crypto ecosystem’s transparency and stability. The regulations, published on March 13, under General Resolution No. 1058, impose obligations regarding registration, cybersecurity protocols, asset custody, and measures to prevent money laundering.
According to Argentine tax lawyer Diego Fraga, the new guidelines mandate the separation of client and company funds while requiring annual audits and monthly reports to the CNV. Beginning in 2024, all VASPs must register under the virtual asset service provider registry (PSAV), with noncompliance resulting in potential revocation of registration and court-ordered bans on unregistered operations.
Companies registered with the PSAV are granted until July 1, 2024, to comply with the new regulations, while domestic companies have until August 1, and international entities until September 1. Roberto E. Silva, President of the CNV, emphasized that noncompliance will result in the inability to operate within Argentina.
A year ago, the CNV initiated stricter requirements for crypto regulations in response to increasing crypto adoption, motivated largely by the significant devaluation of the Argentine peso. By mid-2024, Argentina’s crypto adoption had escalated notably, with local residents increasingly utilizing stablecoins like Tether (USDT).
According to a report by Chainalysis, Argentina has surpassed Brazil to become the largest country in Latin America for crypto inflows, totaling approximately $91 billion from July 2023 to June 2024. Despite challenges such as the LIBRA memecoin scandal involving President Javier Milei, the trend of crypto adoption continues to rise.
In conclusion, Argentina’s new regulations for virtual asset service providers reflect a significant step towards ensuring security and transparency in the rapidly evolving cryptocurrency landscape. VASPs must adhere to specific guidelines regarding registration, asset management, and compliance measures to operate legally in the country. The positive trend in crypto adoption signals a robust interest among Argentinians, notwithstanding recent controversies.
Original Source: cointelegraph.com
