The National Securities Commission of Argentina has finalized a comprehensive regulatory framework for providers of virtual asset services. These new measures establish strict protocols surrounding registration, cybersecurity, asset custody, anti-money laundering safeguards, and risk reporting for companies operating in the virtual assets space.
Under these updated regulations, virtual asset service providers (VASP) are required to maintain detailed separation between corporate funds and those of their clients, submit to yearly audits, and provide monthly compliance reports to the commission. Beginning in 2024, registration in the national VASP registry will be compulsory. Companies that fail to meet these outlined standards face potential revocation of their registration or may have their operational activities legally suspended.
Different deadlines have been set for compliance based on the status of the entity. Individuals registered in the system must conform to the new requirements by July 1, local companies by August 1, and foreign legal entities by September 1. The chairman of the commission, Roberto E. Silva, has made it clear that non-compliance will ultimately prevent firms from conducting business within Argentine borders.
Background and Recent Developments
Argentina’s drive to tighten cryptocurrency regulations first emerged in 2023 when the commission expanded registration requirements to include crypto issuers, incorporating them into existing securities laws. This shift in policy coincided with a significant surge in crypto adoption, largely driven by the rapid devaluation of the Argentine peso.
Amidst these changes, many Argentine investors have increasingly turned to stablecoins such as USDT from Tether as a hedge against inflation. A report by Chainalysis published in October 2024 highlighted Argentina’s remarkable position in the region, surpassing Brazil as the leading Latin American economy in terms of cryptocurrency transaction volumes, which reached an estimated US$91 billion between July 2023 and June 2024.
Industry Reactions
Legal experts in Argentina, including the well-known tax attorney Diego Fraga, have welcomed these measures as they are expected to foster increased transparency and security across the crypto ecosystem. Although the market has faced its share of turbulence, overall enthusiasm for digital assets continues to rise in the country.
Despite occasional controversies within the sector, the ongoing regulatory evolution is anticipated to contribute to a safer and more robust business environment. Companies that successfully adapt to this framework are likely to bolster investor confidence and further solidify Argentina’s reputation as a major player in the digital asset space.
Jason Walker, aka “Crypto Maverick,” is the energetic new member of cryptovista360.com. With a background in digital finance and a passion for blockchain, he makes complex crypto topics engaging and accessible. His mix of analysis and humor simplifies volatile market trends. Outside work, Jason explores tech, enjoys spontaneous road trips, and American cuisine. Crypto Maverick is ready to guide you through the ever-changing crypto landscape with insight and a smile.