Argentina Imposes Stricter Regulations on Crypto Exchanges

Argentina’s top financial regulator, the Securities and Exchange Commission (CVM), has mandated that all crypto exchanges must apply for operating permits. This applies to both individuals and legal entities engaging in cryptocurrency transactions within the country.

Registration Details

Exchanges must register with the Virtual Asset Service Providers Registry (PSAV). Both Argentine citizens and foreigners trading cryptocurrencies in Argentina are subject to this new regulation.

Vendors must provide the CVM with personal information, including full names, dates of birth, addresses, tax codes, and telephone numbers. Additionally, they need to submit website addresses, if applicable, and usernames on social media platforms.

Compliance Requirements

Successful applicants must display their CVM registration numbers on their websites or social media pages. Vendors have 45 days to comply with these rules, which will come into force once published in the Legal Gazette (Boletín Oficial de la República Argentina).

Governmental Endorsement of Crypto

This regulation follows the Argentinian government’s recent decree allowing domestic companies to buy, accept, and hold cryptocurrency. Earlier this year, Argentine regulators met with El Salvadoran counterparts to discuss Bitcoin adoption.

Definition and Compliance

The CVM defines “virtual assets” as digital representations of value that can be traded or transferred digitally and used for payments or investments. This regulatory change aligns with recommendations from the Financial Action Task Force (FATF) to combat money laundering and terrorism financing.

Overseas Exchanges Impacted

Overseas exchanges must also obtain permits if they:

• Use ".ar" URLs targeting Argentine trade.
• Have subsidiaries or third-party partners based in Argentina.
• Operate offices in Argentina.
• Derive 20% or more of their trading volume from Argentina.

Exemptions

Small-scale crypto traders or peer-to-peer vendors are exempt. Companies and individuals not exceeding 35,000 units of purchasing power (UVA) will not need to comply with the new rules.