From a reliable source, Argentina’s National Securities Commission has announced it will set several regulations and requirements to be followed by crypto companies before they get established in the country. It was revealed that the move by Argentina’s National Securities Commission (CNV) is part of their objective to enforce the “security of public savings” before accepting crypto in Argentina.
Argentina’s National Securities Commission (CNV) has the right to make several laws concerning virtual assets in the country. A new bill being discussed by the Argentine Congress will allow CNV to create several crypto regulations that will guide firms seeking to operate in the country. While speaking on the new bill waiting to be passed, a CNV source told CoinDesk, saying, “The worst-case scenario is a regulation that cannot be implemented.”
From the information contained in the new bill, crypto firms who want to get established in Argentina must guarantee the protection of Argentines. Also, the crypto firm must guarantee the “security of public savings” before they are given a license to operate in the country. Because of cases where crypto exchanges were used as means of laundering money, money laundering laws are also contained in the new bill. The crypto exchange will ensure that their firm is not used for money laundering activities.
Several sources indicate why the Argentine Congress may likely go ahead and pass the new bill. To comply with international standards required by the Financial Action Task Force, the Argentine Congress must pass a new bill and make crypto firms meet the requirements. According to the CNV, the Financial Action Task Force will evaluate the financial ecosystem of Argentina in 2024.
Argentine Senate Hits Hard at Crypto Advertisements
The government is now looking at Crypto in Argentina as they are trying to regulate several activities within the industry. Last month, there were confirmed reports that the Argentine senate has made specific laws concerning crypto advertisements.
According to Bitcoin.com, Argentina Senate was taking action against crypto advertisements to reduce the scams recorded in the crypto industry.
Government officials believe that it is some of the crypto advertisements that have lured many people into falling for crypto scams. The Argentina government is taking this action to prevent investors from being defrauded by Ponzi schemes.
Sebastian Negri and Martín Breinlinger, members of the Argentine Securities Commission, spoke at length about how the lack of crypto regulation makes people lose their money to scams.
“With the rise of Bitcoin from 10,000 to 69,000 dollars, what they did was promise people that the profitability that occurred the previous year was going to be repeated for those who entered now. That is false advertising. One cannot promise guaranteed profits. That’s a basic rule, but it was happening,” Negri added.
However, other Senators within the Argentine Congress weren’t comfortable with the idea, as it would lead to more legal battles against crypto firms. Senator Angela stated her opinion: ” I don’t like this project. I don’t like regulations and I don’t really understand how to regulate something that isn’t regulated. It sounds to me that it is a first step towards a regulation.”