Bitcoin Argentina Proposes Draft Bill to Regulate Cryptocurrency Marke
Summary:
Bitcoin Argentina, a non-profit organization, has proposed a draft bill to regulate the cryptocurrency market. This proposal comes with the aim of maintaining decentralization and boosting public trust. The suggested legal framework slots crypto platforms and service providers into three categories: decentralized, domestically centralized or open to dialogue with regulatory bodies, and globally centralized. In case of these platforms collapsing, customers would have extensive judicial protection, affirming their right to claim damages. This initiative by Bitcoin Argentina anticipates Argentina's presidential run-off election amid an ongoing inflation crisis.
Bitcoin Argentina, a non-profit group, has proposed a legislative measure to structure the digital currency market in a manner that ensures decentralization and boosts public confidence. During LABITCONF 2023, held in Buenos Aires, the capital of Argentina, on November 10, the organization discussed the suggested legislation, led by its president, Ricardo Mihura. Despite previously resisting the call for regulatory oversight, Bitcoin Argentina now supports it as a necessary step to both safeguard blockchain and penalize unscrupulous players to the fullest extent possible. Mihura declared: "Even though we opposed regulation of the crypto economy earlier, we have now made a decision to provide a constructive response, with only two mandates: to conserve decentralization and to protect individuals'savings and public trust."
Mihura emphasised that fraudulent ventures and individuals posing under the guise of blockchain cannot be ignored. The first provision of the proposed law categorizes crypto service operators and platforms into three groups based on the determination of property rights: decentralized, domestic centralized or open for negotiation with regulatory bodies, and internationally centralized.
Centralized platforms are allowed to function unrestricted, but their consumers are given assurance of "maximum possible legal protection", confirming their right to seek compensation if the enterprise collapses. The Argentinian court system is expected to refrain from intervening in the operations of decentralized platforms. Judges will be required to determine if a crypto platform is adequately decentralized when resolving claims put forward by customers who allege harm.
Imposing a blanket ban on cryptocurrencies, as some countries have attempted, would be impractical given the global nature of blockchain, warns Mihura. Without even the United States having the capability to prohibit unlicensed cryptoeconomic affairs efficiently, Mihura argues it would be pointless for Argentina to attempt to impose top-down prohibition on its citizens interacting in global venues. He opts to offer the best legal protections available to citizens instead.
The proposed legislation by Bitcoin Argentina is set to be introduced just a week ahead of Argentina's presidential run-off election between Javier Milei, an economist-turned-politician campaigning for the abolition of the country's central bank in favor of the US dollar, and Sergio Massa, the current economy minister of the inflation-stricken nation, which has one of the world's highest inflation rates at 121.7% recorded over the last year.
Published At
11/12/2023 12:08:00 AM
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