Bitcoin Argentina Proposes Legislative Framework to Regulate Cryptocurrency Market
Summary:
Bitcoin Argentina has proposed a legislative draft to regulate the cryptocurrency market while preserving decentralization and public trust. The proposal, presented by President Ricardo Mihura, categorizes cryptocurrency platforms into three categories, offering legal protection for customers of centralized platforms while exempting decentralized ones. This proposal arrives amidst Argentina's ongoing inflation crisis and ahead of its presidential runoff election.
Bitcoin Argentina, a non-government entity, has proposed a legislative initiative aimed at overseeing the digital currency industry while simultaneously promoting decentralization and reinforcing public trust. At the LABITCONF 2023 held in Buenos Aires, Argentina, on November 10th, the non-profit's president, Ricardo Mihura, outlined this plan. The organization, once against the notion of regulating such a niche sector, is now heralding regulation as a necessity to both conserve blockchain and bring lawbreakers to justice.
"The goal behind our new stance isn't just to regulate the crypto economy, a move we previously opposed, but to provide a positive response that safeguards decentralization and secure public confidence and savings," expressed Mihura. He further emphasized the need to deal with numerous fraudulent entities misusing the blockchain platform's reputation.
During the regulation discussion at LABITCONF 2023, Mihura explained the preliminary term of the proposed legal structure - the categorization of crypto platforms and service providers into three groups: decentralized, locally centralized and open to communicating with regulatory bodies, and globally centralized.
The legislation suggests that centralized platforms should operate without restrictions, but those platforms must extend the widest possible legal protection to their users, upholding their rights to seek damages in case of the platform’s failure. However, Argentina’s legal system would not meddle with the operations of decentralized platforms. In dispute involving customers claiming damages, courts will determine if the crypto platform is adequately decentralized.
On the topic of a total ban on digital currencies, a step attempted by some governments, Mihura argued that it's unworkable due to blockchain's international nature. He stated, "Neither the USA nor Argentina can effectively outlaw the operation of an unregulated cryptoeconomy. Hence, it’s pointless to advocate for an across-the-board ban. Instead, we propose the law's greatest offerings to our citizens."
Responsible persons and those who profit from a fraud's marketing chain up until the final victim will all be included under this regulation according to Mihura. This proposed bill comes just before Argentina’s presidential run-off election amidst the country’s ongoing battle with a severe inflation crisis. This past year, Argentina recorded the world's fourth largest annual inflation rate at 121.7%.
Published At
11/12/2023 12:08:57 AM
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