Argentinian cryptocurrency market to see stricter regulation

The Argentinian cryptocurrency market will see the introduction of a new law aimed at regulating the market, with the intention of curbing risks such as money laundering that are linked to digital currencies.

Over the past year, the Argentinian cryptocurrency market saw transactions valued at $85.4 billion, establishing itself as a global hotspot. This surge is due to Argentinians combating soaring inflation rates and a faltering local currency, as per the data provided by Chainalysis.

On Wednesday, the government of Argentina approved a new fiscal plan that offers a tax forgiveness programme for individuals who disclose assets of up to $100,000, which also includes recorded digital currency holdings.

This initiative, according to Roberto Silva, the head of the National Securities Commission, could potentially alleviate the pressure from the Financial Action Task Force (FATF), an entity associated with the World Bank, International Monetary Fund (IMF), and United Nations, to establish regulations for the crypto market in Argentina.

The FATF has issued a warning to potentially include Argentina in its list of Countries under Increased Monitoring (the “grey list”), a move that would heighten oversight of the nation and potentially hinder foreign investments, raise global interest rates, and pose a threat to the country’s GDP, as per an analysis by the IMF. Silva emphasised that the initial phase towards regulating crypto assets involves their registration, with regulations likely to mirror those implemented by the United States.

Argentine authorities are set to convene with the Financial Action Task Force (FATF) in Paris come October, with the ongoing evaluation of Argentina’s measures against money laundering and the funding of terrorist activities being the main agenda.

Source: Reuters