Argentina’s top financial regulator says it plans to “supervise” crypto providers in Latin America. on March 18, the National Securities Commission (CNV) said it would “proceed” to control the country’s trading platforms.
It will also create a national registry of cryptocurrency platforms, which will likely have to apply for licenses to operate.
The Argentine regulator wants to “comply with FATF regulations”
CVM ‘s move comes four days after Argentina’s Senate “approved the creation of a registry of cryptocurrency service providers” – reported Criptonoticias.
Media outlets had already reported that senators had “yielded” to the demands of the Financial Action Task Force (FATF). CNV wrote that it is “working to adjust and implement the scope” of the law, which would force exchanges to adopt “money laundering and terrorist financing prevention” protocols.
As part of this effort, CNV will also be designated as the body that “supervises, regulates and imposes sanctions” on domestic crypto platforms.
FATF gray list warning
The moves by the Senate and CNV followed a visit by FATF officials earlier this month. FATF reportedly told Argentine government officials that the nation risked ending up on the “gray list” if it did not oversee its crypto sector.
The number of cryptocurrency holders in Argentina has increased in recent years due to spiraling inflation. New President Javier Milei responded by introducing austerity measures to combat inflation. He also devalued the peso, gaining IMF approval in the process.
However, confidence in the peso is at its lowest ever. Milei pledged before the election to abandon the peso in favor of the US dollar. And with limits on purchases in USD limiting citizens, many have opted for cryptocurrencies, hoping that tokens will provide a safe store of value.
However, this seems to have caught the attention of the FATF. And with Buenos Aires still dependent on IMF support for economic survival, Milei cannot afford to put the country on the gray list.
New rules will limit access, critics warn
Criptonoticias quoted Sonia Salvatierra, a member of the regulator’s board, as saying that “it is very important for CNV to comply with the FATF report.” She added that the Argentine regulator was focused on “achieving goals” with a view to “strengthening and promoting the development of the Argentine capital market.”
In a Medium post, president of cryptocurrency pressure group Bitcoin Argentina Ricardo Mihura warned that the new cryptocurrency regulations will “limit access to the market.” He wrote:
“[Crypto] has been a refuge of value and a guarantee of freedom for thousands of savers and independent workers during years of inflation and arbitrary monetary restriction measures.”
