Argentina is stepping up its crypto regulations with a draft that could reshape how crypto institutions operate. The Argentine securities regulator (CNV) has opened a public consultation on General Resolution 1,025, which proposes new compliance rules for virtual asset service providers (VASPs). If the rules are passed, they will enforce transparency, requiring crypto companies to disclose their third-party agreements and set minimum capital requirements for operations.
The main motive is to strengthen cybersecurity, prevent money laundering, and improve the country’s financial infrastructure. Argentina’s crypto rules are a shoutout for all the nations dealing with unfair crypto practices.
Let’s see what it means for investors!
Minimum Capital Requirement Sparks Debate
A key part of the draft is the minimum capital threshold for crypto firms. Moreover, this rule is set or big Institutions dealing with the transfer, custody, and management of virtual assets would need around $173,000 to operate legally. However, individuals trading crypto won’t need to register as companies, keeping the process accessible for small traders. The draft builds upon the existing VASP registry, which Argentina launched earlier this year.
Industry Reaction: Caution and Hope
Mostly everybody has mixed reactions to this rule. While most agree that regulation is necessary, they emphasize the need for a balanced approach. Carlos Peralta, from Bitso Argentina, praised the draft for involving public consultation, which he believes will foster financial inclusion and a more efficient financial system. Meanwhile, Juan Pablo Fridenberg, director at Lemon Exchange, warned that excessive regulation could restrict crypto growth, pushing users toward deregulated or cross-border platforms. He stressed that regulations must be gradual and thoughtful to encourage industry expansion.
Do you think over-regulations will harm the crypto in the current scenario? Tell us what you think about Argentina’s crypto rules fair or overreach.
Source: https://coinpedia.org/news/argentinas-new-crypto-regulation-will-small-traders-survive-the-new-rules/