A bill that establishes a registry for any organization that provides bitcoin services in Argentina was approved by the Senate. This registry, which also requires cryptocurrency companies to provide personal information about their clients and other data to government agencies, will be maintained by the CNV, Argentina’s securities regulator.
Senate of Argentina Adopts Cryptocurrency Anti-Money Laundering Law
New regulations for virtual asset service providers (VASPs) doing business in Argentina were introduced by lawmakers. The Argentine Senate amended the present legislative framework for cryptocurrency exchanges and other crypto-related businesses to comply with anti-money laundering procedures, and the decision was unanimous on March 14.
The amendment stipulated that a VASP registry would be established and administered by Argentina’s securities regulator, the CNV. Furthermore, the law establishes other requirements for these businesses, such as providing information to “increase transparency, traceability, and monitoring of operations and users” and other details pertaining to personal customer data.
The Financial Action Task Force (FAFT), a global money-laundering watchdog, issued suggestions to the nation before visiting to assess the nation’s efforts in this area, and the statute was enacted in response.
Several reports indicated that the measure, which had been approved by the lower house of Congress but had been shelved since April, would be passed by a presidential executive order because of its significance.
The prospect of this bill being passed had previously sparked unfavorable reactions in Argentina’s cryptocurrency community, with some claiming that it would cause market consolidation. Big VASPs would be able to meet the requirements right away, while P2P markets and tiny exchanges might not be able to afford to operate.
In order to achieve parity between the tax duties of bitcoin and other financial assets, the Argentine Fintech Chamber also proposed a legislation proposal prior to the enactment of this money laundering statute, which sought to guarantee distinct tax exemptions for cryptocurrency holders.
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