Argentina: Upcoming crypto regulations will not focus on tokens, but…

• The government of Argentina is considering a regulatory framework for crypto companies that will define oversight and jurisdiction. 
• The country’s National Securities Commission is expected to have oversight of crypto firms following a Congressional vote. 

The government of Argentina is looking to come up with a regulatory framework. It would define the oversight requirement for companies operating in the crypto space. Moreover, the country’s National Securities Commission (CNV) will reportedly be involved with the development and implementation of said regulations. 

Argentina’s NSC may get jurisdiction over crypto firms

According to a 7 February report by Bloomberg, Argentina’s National Securities Commission is to launch the requirements for crypto companies. People familiar with the matter revealed that this may include proof of solvency. The CNV is awaiting the results of a key Congressional vote to enforce its regulations on crypto firms. 

Argentina’s Congress is currently debating a reform in its money laundering prevention law. The law will give the Nation Securities Commission oversight of digital asset service providers. According to CNV President Sebastian Negri, the upcoming regulation will focus on crypto exchanges, not tokens. The regulation could effect progressively following approval of the Congressional bill. 

The CNV chief stated:

“We will set up a working group with the industry to agree on the new regulatory parameters, which will include that companies comply with requirements of assets and solvency to back the risk these assume.”

When asked about the possibility of demanding proof of solvency from crypto firms, he stated that the agency would take the decision after discussion with industry bigwigs. 

The rampant inflation in Argentina, paired with the country’s strict currency controls, has made crypto a popular choice among its citizens. The collapse of FTX last year led to a bank run on local crypto exchanges, with some seeing as much as a quarter of their deposits withdrawn. Thus, Argentine’s regulators are reportedly planning to impose capital market-like requirements on crypto firms.