Argentina Starts Enforcing Cryptocurrency Regulations Based on FATF Guidelines
Summary:
The Argentine government has initiated regulations for legitimate operations of cryptocurrency exchanges based on the Financial Action Task Force (FATF) guidelines. As per the country's Anti-Money Laundering and Counter-Terrorism Financing laws, crypto-related companies are required to register with the government. This move stems from a series of amendments approved in March aiming to curb money laundering and terrorism financing. The application of these rules has raised concerns among the crypto community in Argentina about the future of digital assets.
The Argentine government has started enforcing rules for legitimate cryptocurrency operations within its borders. On March 25, it was confirmed by the Comisión Nacional de Valores (CNV) — Argentina's securities regulation body — that all virtual asset service providers must abide by the Financial Action Task Force (FATF) guidelines. Certain corporations that offer cryptocurrency services are now required to register with the Argentine government as part of the changes to the nation's Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) regulations.
The enforcement of the law around cryptocurrency providers in Argentina moved a step forward on March 14 after the Senate accepted amendments to laws aimed at curbing money laundering and terrorism financing. According to CNV Head, Roberto Silva, any unregistered virtual asset service providers would not be permitted to operate in the country.
The proposed alterations to Argentina's regulations affecting crypto users seemingly occurred prior to Javier Milei's presidential victory in November 2023. While Milei's presumed pro-Bitcoin views were praised by many crypto enthusiasts at the time, the enactment of the FATF guidelines has raised concerns about the future of digital assets in Argentina.
Users on Strike, a popular platform in Argentina that enables Bitcoin transactions through the Lightning network, have reported that the app no longer permits them to transfer fiat to their bank accounts. The potential impact these requirements may have on businesses in Argentina or on customers wanting to avail their services is yet to be clear. In December 2023, Argentina's foreign affairs minister announced the possibility of settling contracts in Bitcoin and other crypto currencies. During a ceremony on Malvinas Day (April 2) to honor those who perished in the 1982 Falklands War, Milei publicly addressed these issues.
Published At
4/2/2024 11:25:59 PM
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