Argentina Tightens Grip on Crypto Sector with Launch of National Registry for Exchanges

Argentina Tightens Grip on Crypto Sector with National Registry for Exchanges

In a move aimed at ensuring market integrity, Argentina has rolled out a national registry for crypto exchanges, signaling a tightening grip on the burgeoning sector. The country’s National Securities Commission (CNV) has launched the Virtual Asset Service Provider (VASP) registry, with nearly a hundred individuals and legal entities already submitting applications, according to the government’s announcement.

The registry will accept new applications from entities interested in offering crypto trading services in Argentina, with the condition that applicants must wait for registration confirmation before commencing operations. Of the 85 requests received from legal entities since the registry’s launch, 35 have been successfully registered so far, including four foreign platforms, although they were not named.

Entities that have submitted registration requests to the registry will be allowed to continue operations in Argentina, while non-compliant entities will be barred from conducting activities until registered, the announcement states. The mandatory registry requirements for the crypto space were first unveiled in late March, with CNV chair Roberto E. Silva emphasizing the importance of preventing money laundering and terrorism financing.

Despite the government’s efforts to regulate the sector, the local crypto community has expressed concerns about increased government intervention. Manuel Ferrari, a member of the Argentinian NGO Directive and co-founder of the Money On Chain protocol, criticized the registry as a “terrible idea,” arguing that Bitcoin is “money, not a security.”

As Argentinians increasingly turn to Bitcoin and other cryptocurrencies as a financial refuge, both legitimate transactions and scam activities have been on the rise. The CNV’s regulation aims to mitigate these risks without stifling innovation in the crypto space, as reported by crypto.news earlier.

The implementation of the national registry for crypto exchanges in Argentina reflects the government’s commitment to ensuring market integrity and preventing illicit activities in the rapidly growing sector.