According to reports, the Argentinean government is getting ready to issue an executive order regulating bitcoin service providers. By keeping Argentina off the Financial Action Task Force’s (FATF) gray list, the proposal would place crypto service lenders under the jurisdiction of the regional securities regulator.
According to reports, an executive order will regulate cryptocurrency service providers in Argentina.
By means of an executive order, the Argentinean government hopes to regulate cryptocurrency service providers. Local media sources said that President Javier Milei was getting ready to sign an emergency proclamation to establish guidelines for these, placing them under the national securities watchdog’s (CNV) jurisdiction.
Milei’s primary goal would be to keep Argentina off the Financial Action Task Force’s (FATF) gray list, which it was added to from 2010 to 2014 because of its lax money laundering regulations. This step would be supported by the FATF’s impending visit, which is scheduled to evaluate the nation’s anti-money laundering measures.
The new law requires all bitcoin service providers, even those without an Argentine base, to register with the national cryptocurrency watchdog and operate under a license granted by the organization. Additionally, in order to comply with anti-money laundering rules, these would have to disclose unusual movements and generate risk reports to the national intelligence unit. This would force bitcoin service lenders to report these kinds of activities.
The implementation of such restrictions may result in a concentration of the cryptocurrency market, since major cryptocurrency providers in the nation would be able to meet these standards right away. Peer-to-peer (P2P) markets and small exchanges may be forced to close if they are unable to comply.
The presidential order is expected to be released prior to the FATF’s scheduled visit to Argentina on March 6th, during which time it will assess the anti-money laundering measures that the country has implemented since its previous visit.
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