President Javier Milei has a Bitcoin plan for Argentina

President Javier Milei’s government is reportedly developing an imminent Decree of Necessity and Urgency (DNU), putting the Argentine cryptocurrency industry on high alert as it diligently tracks swirling rumors.

In its pursuit of staying at the forefront of financial crime prevention, the Financial Action Task Force (FATF) has scheduled a visit to the country for March 6. The objectives of the project are under keen observation, ensuring thorough attention to detail during their visit.

Ricardo Mihura, president of Bitcoin Argentina, a non-governmental organization, voices concerns that the proposed decree, influenced by President Javier Milei’s government, may include provisions that “threaten the freedom of Bitcoin trading and impose restrictions on access to the crypto-assets market.” 

According to Mihura, such measures could undermine the role of cryptocurrencies as a refuge and source of income for thousands of savers and freelancers, particularly amidst years of arbitrary monetary policies and inflationary pressures.

What progress is being made in President Javier Milei Argentina’s regulation of Bitcoin and cryptocurrency?

The National Securities Commission (CNV) has proposed changes to the Anti-Money Laundering Law (AML).

These changes aim to include virtual asset service providers (VASPs), a category recommended by FATF. 

In this line, the creation of a CNV-supervised Registry of Virtual Asset Service Providers (PSAV) to improve the visibility, provenance, and monitoring of crypto activities and users was considered.

Although this project had been placed on hold, the new administration promised to revive it as a result of the FATF visit and make it a reality, to which the sector’s experts replied.

Following FATF’s recommendation, Bitcoin Argentina, an NGO, agrees that virtual asset service providers (VASPs) should be designated as individuals responsible for reporting suspicious transactions to the Financial Information Unit (UIF), which should keep a registry of VASPs.

Nonetheless, “the NGO rejects that PSAVs should obtain an enabling license from the National Securities Commission (CNV) and that this body should also be able to regulate all aspects of crypto-assets trading,” according to the statement. 

Regarding the necessity for a new regulation, Mihura stated: “Another statute is not required for this. 

However, this has nothing to do with requiring authorization to sell or acquire Bitcoin, as it is not regarded as a negotiable security under our laws or in any other area of the globe.”

Finally, the referents of the bitcoiner community formulated several criteria that the government should respect in the event of enacting any law relating to virtual assets and PSAVs:

• The definition of PSAV as regulated entities should only refer to large exchanges and exclude individuals who engage in person-to-person transactions, whether regularly or not, with settlement in bank or Payment Service Provider (PSP) accounts, which are already regulated entities.
• The establishment of a registry for PSAVs should be centralized within the FIU, which is the competent authority in matters of money laundering. This registry should be informative rather than a requirement for engaging in the activity. The responsibility of keeping this registry updated lies with the FIU, not with those who carry out the activity. The registry does not represent a requirement for engaging in lawful trade.