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Argentina’s primary financial authority has announced that cryptocurrency exchanges are required to obtain operating licenses, a regulation that will affect both “individuals and legal entities.”
According to a ruling from the Securities and Exchange Commission (CVM), businesses that sell cryptocurrencies within the nation must now register with the “Virtual Asset Service Providers Registry (PSAV).”
Argentina Crypto Exchanges – New Regulation
This new regulation is applicable not only to Argentine nationals but also to foreign individuals who engage in cryptocurrency trading within the country.
The CVM will mandate that all vendors submit their full names and birth dates. Additionally, they must provide their addresses, tax identification numbers, and contact phone numbers.
Vendors are also required to share their website URLs, if relevant, along with their social media usernames.
Successful applicants will then need to display their CVM registration numbers on their websites or social media profiles to inform visitors.
The document states that companies and individual vendors will have a period of 45 days to adhere to the new regulations.
The regulations will take effect once they are published in the Legal Gazette (Boletín Oficial de la República Argentina).
This decision follows closely after the Argentine government announced that local companies are permitted to purchase, accept, and hold cryptocurrencies.
Earlier this year, leading Argentine regulators convened with their counterparts from El Salvador to discuss the latter’s Bitcoin (BTC) adoption.
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The CVM’s ruling included a definition of “virtual assets,” describing them as “digital representations of value that can be traded and/or transferred digitally and utilized for payments or investments.”
Argentina looks to tame crypto market as money-laundering fears draw scrutiny https://t.co/eees2tagaQ pic.twitter.com/mmlSNSAd0D
— Reuters (@Reuters) July 18, 2024
FATF Driving Regulatory Change?
The regulator indicated that it was acting in response to a recommendation from the Financial Action Task Force (FATF), following the latter’s latest assessment. The CVM stated:
“[The new rules will help] the fight against money laundering and the financing of terrorism, with regard to the adaptation of new technology.”
The authority further noted that these measures were a “result of the increase in transactions involving virtual assets.”
Foreign exchanges will also be required to secure permits if:
- They target Argentine users by utilizing “.ar” domain names
- Have subsidiaries or third-party partners based in Argentina
- Maintain offices within Argentina
The regulations will also apply if 20% or more of an overseas trading platform’s transaction volume comes from Argentina, according to the CNV.
The Central Bank of Argentina repurchased the majority of put options from financial entities, bringing President Javier Milei one step closer to lifting currency controls https://t.co/ZFdbGWreH9
— Bloomberg Economics (@economics) July 19, 2024
It appears that the new regulations will not be applicable to small-scale cryptocurrency traders or peer-to-peer vendors.
The post Argentina Crypto Exchanges Forced to Obtain Operating Permits appeared first on Cryptonews.
