Argentina’s government has taken steps to regulate cryptocurrency exchanges, requiring them to register with the country’s securities regulator, the Comisión Nacional de Valores (CNV). This move aligns with recommendations from the Financial Action Task Force (FATF) and aims to enhance Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) efforts.
The implementation of these requirements follows the approval of modifications to Argentina’s laws aimed at preventing money laundering and terrorism financing by the country’s senate on March 14. CNV President Roberto Silva emphasised that virtual asset service providers must register to operate legally in the country, and unregistered entities will not be permitted to conduct business.
The regulatory changes come amidst shifts in Argentina’s political landscape, including the election of Javier Milei as president in November 2023. Despite initial optimism from some crypto proponents regarding Milei’s pro-Bitcoin stance, the enforcement of FATF requirements has raised concerns about the future of digital assets in Argentina.
The impact of these regulations on businesses and consumers remains uncertain. Many users on Strike, popular in Argentina for facilitating Bitcoin payments via the Lightning network, reported the app no longer allows locals to send fiat to bank accounts. It’s unclear how the requirements may affect businesses operating in Argentina or customers seeking to use their services. In December 2023, Argentina’s minister of foreign affairs said contracts could be settled in Bitcoin and other cryptocurrencies.
As regulatory developments unfold, stakeholders in Argentina’s crypto ecosystem continue to monitor the evolving landscape closely. Milei, meanwhile, addressed the public on April 2 during a ceremony commemorating Malvinas Day, reflecting on the country’s history and honouring those affected by the Falklands War in 1982.