- New rules came accompanied by changes to the current AML and CFT law.
- In the past, the country had approved cryptocurrencies as payment methods and settlements.
The government of Argentina has ordered the registration of crypto exchanges as well as other businesses in the field by establishing a registry of Virtual Asset Service Providers (VASP). The laws were enacted at the time that Argentina’s president, Javier Milei, was considered to be a proponent of cryptocurrency but is now confronted with criticism.
New Registration Rules for Crypto Exchanges
Argentina moved ahead with new cryptocurrency rules on the 14th of March when the country’s Senate approved changes to laws pertaining to the prevention of money laundering (AML) and combating the financing of terrorists (CFT).
Javier Milei makes his first major mistake,” tweeted Max Kieser, a Bitcoin advocate and Advisor to President El Salvador. Nayib Bukele. El Salvador became the first country to accept Bitcoin and give it the status of a legal tender.
“He never took the time to understand #Bitcoin; now he’ll suffer the consequences,” Kieser added, criticizing the president of Argentina who took office following the economic crisis country’s elections in November 2023.
Javier Milei makes his first major mistake.
He never took the time to understand #Bitcoin, now he’ll suffer the consequences. https://t.co/P2arqfxrE2— Max Keiser (@maxkeiser) April 1, 2024
A Bitcoin-Bull President
Following the victory in the presidential election, President Milei’s government officially authorized the use of Bitcoin and other digital currencies to settle contract disputes and payments. The decree, however, did not specifically refer to cryptocurrencies but instead included clauses that allow both businesses and individuals the ability to choose their preferred method of payment regardless of whether it’s legally recognized in Argentina.
Transacting Bitcoin in Argentina… pic.twitter.com/GwFH1dZgDT
— Rebel Capitalist Pro (@RebelCapPro) April 3, 2024
The South American country’s regulator for securities, the Comision Nacional de Valores (CNV), recently clarified that the new regulations would ensure that the new rules align Argentina in line with recommendations from the Financial Action Taskforce on CFT and AML rules. CNV’s president, Roberto Silva, clarified that VASPs registered but not registered “will not be able to operate in the country.”
Argentina is facing an economic decline and hyperinflation. According to official statistics, Argentina’s annual inflation increased to 211.4 percent in the year 2023. This was the highest level over the last 32 years. This was up from 95 percent in the year prior. The country’s currency was devalued by 50 percent.
