Argentina plans to tighten regulation of crypto firms

Argentina is looking to include cryptocurrency companies in their anti-money laundering regulations according to local reports.

The Buenos Aires Times cited a source that revealed Argentina’s Unidad de Información Financiera (UIF) is looking to add cryptocurrency businesses to its list of entities subject to reporting and recording customer transactions, with regulation expected to be published this year.

If the regulation is passed, crypto firms will be required to comply with KYC procedures, as well as report suspicious transactions. 

Argentina’s regulation is currently limited to tax reporting regulation that was passed in 2019, however it appears that the country is preparing to expand their regulation in line with the global move for greater regulation of the crypto space.

In December last year, Argentina’s central bank noted that they would be cracking down on cryptocurrency scams as well as investigating crypto companies that they believe carry a high investment risk.

“The BCRA, through the Superintendency of Financial and Foreign Exchange Entities, has carried out inspections in several provinces, initiating the respective investigations and adopting cessation orders on these practices and will initiate the corresponding summary and judicial actions to protect the public” the statement noted.

The central bank also revealed it may be taking legal action against a number of illegal crypto operations that offer specific investment services.

While cryptocurrency adoption in Argentina remains high, and president Alberto Fernandez stating that he was open to adopting cryptocurrencies as legal tender, it seems that regulators fear a similar economic situation to the one in El Salvador, and may be implementing legislation as a way to prevent bitcoin financing.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.