Industry stakeholders in Argentina are voicing concerns over a draft proposing new crypto regulations for institutions, requiring them to register with minimum capital.
Members of the cryptocurrency industry in Argentina spoke out about a new plan that would limit the activities of crypto institutions in the country. If the draft is passed, each institution will have to register and have a certain amount of capital to do business in Argentina.
Argentina makes a draft of the VASP rules available for public comment.
Argentina is changing the way it handles cryptocurrencies to better protect people who use them. The Argentine Securities Commission (CNV) recently stated that the public can review a draft of a law regulating virtual asset service providers (VASPs) in the country. This would mean that these businesses would have to follow new rules.
If General Resolution 1,025 is passed as is, it will require crypto companies to show contracts they have with customers and third parties. By setting rules and policies for cybersecurity, it also tries to stop people from laundering money and funding terrorists. It is a follow-up to the VASP register, which came out earlier this year.
Regarding the goals of this new plan, Roberto Silva, President of CNV, said that the resolution aimed to “regulate according to the principles of the law, but without stopping innovation in the sector.” He also asked crypto companies to help make this draft better.
One of the most controversial parts of this draft is the way it changes the definition of crypto companies and sets a minimum amount of registered capital that these companies must have to run in the country.
Nearly $173,000 will be the minimum capital that institutions that transfer, store, and handle virtual assets must have. People will be able to trade regular currencies for cryptocurrencies and cryptocurrencies for cryptocurrencies without setting up a business.
People in the crypto business were wary of this new draft. They said that while rules are needed, they should be made in a way that lets companies grow.
Bitso Argetina’s head of public affairs, Carlos Peralta, said:
At Bitso, we deeply value that the review of the requirements for registration in the VASP registry is done through public consultation, which will contribute to financial inclusion and the construction of a faster and more efficient financial infrastructure.
Juan Pablo Fridenberg, who runs Lemon, one of the most well-known exchanges in Argentina, also supports rules that make it easier for exchanges to do business in the country. “The people in charge know that regulation needs to be smart and slow.” “As international groups have warned, a framework that distorts, suffocates, or makes it too expensive for VASPs to do their work will make users want to move to other, deregulated, or cross-border areas,” he said.
