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The leading financial authority in Argentina has announced its intention to “oversee” the country’s cryptocurrency service providers.
The National Securities Commission (CNV) stated on March 18 that it would “move forward” to monitor the nation’s trading platforms.
Additionally, it will establish a national registry for crypto platforms, which will likely be required to seek operating licenses.
Argentina Regulator Aims to ‘Adhere to FATF Guidelines’
The CNV’s initiative follows the Argentine Senate’s recent “approval of a registry for cryptocurrency service providers,” as reported by Criptonoticias.
The news outlet previously indicated that senators had “yielded” to the requests of the Financial Action Task Force (FATF).
The CNV noted that it is “endeavoring to adapt and implement the scope” of legislation that will compel exchanges to adopt “anti-money laundering and counter-terrorism financing” measures.
The new regulations will also designate the CNV as the authority that “oversees, regulates, inspects, and enforces” compliance among the nation’s crypto platforms.
FATF Grey List Alert
The actions taken by the Senate and CNV come after a visit from FATF representatives earlier this month. The FATF has reportedly warned Argentine officials that the country risks being placed on its “grey list” if it does not effectively regulate its crypto sector.
In recent years, cryptocurrency ownership has surged in Argentina due to escalating inflation. Newly elected President Javier Milei has implemented austerity measures aimed at tackling inflation. He has also devalued the peso, securing approval from the IMF in the process.
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Argentina’s monthly inflation rate has decreased for the second consecutive time as President Javier Milei’s austerity measures push the economy into recession https://t.co/eLXX06NSVE
— Bloomberg Markets (@markets) March 12, 2024
Nevertheless, trust in the fiat peso is at a historic low. Milei committed before his election to replace the peso with the US dollar.
With USD purchasing limits affecting citizens, many have turned to cryptocurrency, seeking a reliable store of value.
This situation seems to have drawn the attention of the FATF. With Buenos Aires still reliant on IMF support for its economic stability, Milei cannot afford to allow the country to be placed on the grey list.
Consumers in Argentina are running out of options to protect themselves from soaring price increases as Javier Milei’s austerity measures push the nation further into recession https://t.co/riNMi79lKp
— Bloomberg (@business) March 4, 2024
New Regulations May Limit Access, Critics Warn
Criptonoticias cited Sonia Salvatierra, a member of the regulatory body’s board, stating that “for the CNV, it is crucial to comply with the FATF report.”
She further mentioned that the Argentine regulator is focused on “achieving objectives” aimed at “strengthening and promoting the growth of the Argentine capital market.”
In a Medium post, Ricardo Mihura, president of the crypto advocacy group Bitcoin Argentina, cautioned that the new regulations would “limit access to the cryptoasset market.” He stated:
“[Crypto] has served as a safe haven and a guarantee of freedom for countless savers and freelance workers during years of inflation and arbitrary monetary restrictions.”
The post Argentina Regulator Outlines Plans to Police Crypto Exchanges appeared first on Cryptonews.
