Argentina’s government has initiated measures requiring cryptocurrency exchanges to operate legally in the country. The Comisión Nacional de Valores (CNV), Argentina’s securities regulator, announced on March 25 that virtual asset service providers must comply with Financial Action Task Force (FATF) recommendations regarding Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) laws.
The implementation of these requirements follows the approval of modifications to Argentina’s laws aimed at preventing money laundering and terrorism financing by the country’s senate on March 14. CNV President Roberto Silva emphasized that unregistered virtual asset service providers would not be permitted to operate in Argentina.
The move comes amid concerns about the future of digital assets in Argentina, particularly following the ascension of President Javier Milei, who was initially seen as pro-Bitcoin. However, the enforcement of FATF requirements has raised apprehensions among crypto proponents.
Additionally, popular Bitcoin payment facilitator Strike, widely used in Argentina, has reportedly restricted locals from sending fiat to bank accounts. The implications of these requirements on businesses and customers in Argentina remain uncertain, particularly after the country’s foreign affairs minister’s statement in December 2023 allowing contracts to be settled in Bitcoin and other cryptocurrencies.
However, the impact on the country’s crypto ecosystem and its users remains to be seen as regulations continue to evolve.
