Argentina’s government has begun implementing requirements for cryptocurrency exchanges to operate legally in the country.

In a March 25 announcement, Argentina’s Comisión Nacional de Valores (CNV) — the country’s equivalent of a securities regulator — said virtual asset service providers would be operating in accordance with recommendations from the Financial Action Task Force (FATF). Certain companies offering crypto-related services must register with the Argentina government as part of reforms to the country’s Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) laws.

The implementation of the law affecting crypto providers in Argentina moved forward on March 14, when the country’s senate approved modifying laws aimed at preventing money laundering and the financing of terrorism. CNV President Roberto Silva said virtual asset service providers that are not registered “will not be able to operate in the country.”

The proposed modification to Argentina’s laws affecting crypto users reportedly came before Javier Milei won the country’s presidential election in November 2023. Many crypto proponents lauded the ascension of Milei at the time for his seemingly pro-Bitcoin views, but the implementation of the FATF requirements seems to have many concerned for for the future of digital assets in Argentina.

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.

Milei spoke publicly on April 2 as part of a Malvinas Day ceremony recognizing the loss of life during the Falklands War in 1982.

Source : Cointelegraph / Apr 2, 2024