In a move that will apply to both “individuals and legal entities,” Argentina’s top financial regulator has mandated that crypto exchanges register for operating permits.
As per a ruling by the Securities and Exchange Commission (CVM), vendors who sell cryptocurrency in the country are now required to register with the “Virtual Asset Service Providers Registry (PSAV).”
New Regulations for Crypto Exchanges in Argentina
The new regulation applies to Argentine citizens and expatriates engaging in cryptocurrency trading within the country.
The CVM will require all vendors to submit their complete names and dates of birth. Additionally, they must furnish their addresses, tax codes, and telephone numbers.
Additionally, vendors must furnish the regulator with their social media usernames and website addresses, if applicable.
Successful applicants must provide visitors with CVM registration numbers by incorporating the necessary information into their website or social media profiles.
The document specifies that private vendors and companies will have a maximum of 45 days to adhere to the new regulations.
The regulations will be implemented upon publication in the Legal Gazette (Boletín Oficial de la República Argentina).
The decision was made mere days after the Argentinian government authorized domestic companies to acquire, accept, and store cryptocurrency.
Top Argentinian regulators convened with their counterparts from El Salvador earlier this year to deliberate on the latter’s implementation of Bitcoin (BTC).
A definition of “virtual assets” was included in the CVM’s ruling. It referred to them as “digital representations of value that can be traded, transferred, and used for payments or investments.”
FATF Influences Regulatory Reform?
The regulator stated that it was in response to a recommendation from the Financial Action Task Force (FATF). This is based on the most recent assessment conducted by the latter. The CVM composed the following:
“[The new rules will help] the fight against money laundering and the financing of terrorism, with regard to the adaptation of new technology.”
The body also stated that the measures were a “consequence of the growth of transactions with virtual assets.”
Permits will also be required for overseas exchanges if:
- By employing “.ar” URLs, they concentrate on commerce with Argentina.
- Do subsidiaries or third-party collaborators exist in Argentina?
- Possess facilities in Argentina.
- The regulations are also applicable if Argentina accounts for 20% or more of the trading volume of an overseas trading platform, according to the CNV.
There is no indication that the new regulations will not apply to peer-to-peer vendors or small-scale crypto traders.
The document’s authors noted that companies and individuals with a purchasing power (UVA) of less than 35,000 units will be exempt.
