Argentine regulators have stated it lacks the authority to intervene in the ongoing $LIBRA matter, which stirred a huge controversy following President Javier Milei’s involvement. According to regulators, the sales and promotion of the $LIBRA token are beyond their jurisdiction.
Argentine: Can’t Intervene in $LIBRA Matter Due to Lack of Clear Regulation
Argentine’s National Securities Commission (CNV) has emphasized that current regulations don’t cover cases like the promotion of digital assets on decentralized platforms. In the case of $LIBRA, the issue began when the token was advertised through social media and traded on the unregulated Solana blockchain, without any registered intermediaries in Argentina.
According to local media reports, the current regulatory framework simply doesn’t address the advertising of tokens on decentralized networks, leaving regulators with no ground to take action.
The CNV has long been advocating for stronger oversight in the crypto industry, especially targeting Virtual Asset Providers (PSAV). Although the agency is pushing for stricter rules, it has yet to step in with the $LIBRA matter According to industry insiders, when $LIBRA launched, it wasn’t available on mainstream wallets like Lemon, which are registered as PSAVs in Argentina. Instead, it was only accessible on decentralized exchanges (DEXs) and wallets running on the Solana blockchain.
Because operations involving decentralized platforms typically require a high level of technical knowledge, regulators have not taken any immediate action in the $LIBRA case. However, the controversy has brought to surface a significant gap in regulations surrounding the promotion of cryptocurrencies on decentralized platforms. This has raised concerns over the impact of such unregulated activity on Argentina’s local market.
As for the regulatory framework, the CNV has been working for nearly a year on establishing a registry for PSAVs to better organize Argentina’s crypto ecosystem. So far, over 120 companies have joined the list, marking progress toward a more structured and formalized sector.
Also Read: $LIBRA’s Hayden Davies Denies Bribing Javier Milei; Says Media Reports are ‘Politically Motivated’
Source: https://www.cryptonewsz.com/argentine-regulators-cant-intervene-libra/