Argentina President Milei’s crypto stance tested as country adopts international AML standards

Argentina, government has introduced mandatory registration requirements for crypto firms. The Comisión Nacional de Valores (CNV), Argentina’s securities regulatory authority, announced that virtual asset service providers must comply with the new regulations designed to enhance the country’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework. 

This move aligns with the recommendations from the Financial Action Task Force (FATF) and marks a pivotal moment for digital asset services in Argentina.

Argentina adopts global standards with new crypto regulation

Argentina’s Senate passed modifications to the existing legislation targeting money laundering and terrorism financing, thereby paving the way for the implementation of stricter oversight on crypto operations. 

The CNV emphasized that these changes are in line with FATF guidelines, which aim to ensure that virtual asset service providers operate transparently and with accountability. According to CNV President Roberto Silva, unregistered crypto firms will no longer be permitted to function within the country. 

This regulation is part of Argentina’s broader efforts to integrate into the global financial system by adopting internationally recognized standards and practices.

Impact on the crypto industry and users

The requirement for crypto businesses to register with the Argentine government signifies a shift towards more regulated and structured oversight of digital assets in the country. The reforms, which were initiated before the election of President Javier Milei—a known proponent of Bitcoin and digital currencies—have sparked discussions within the crypto community. 

The implementation of FATF’s recommendations has raised concerns about the future of digital assets in Argentina, especially among those who viewed Milei’s presidency as a positive development for the crypto space.

One of the immediate effects of the new regulations is on the operations of Strike, a custodial Lightning wallet popular among Argentines for facilitating Bitcoin payments. Users have reported that the app no longer supports sending fiat to bank accounts, indicating a direct impact on the availability of certain crypto services in the country. This development underscores the broader implications of the new requirements for businesses operating in the digital asset sector and their customers. 

Argentina’s bold move in crypto regulation and national engagement

Argentina’s Minister of Foreign Affairs even suggested that contracts could be settled using Bitcoin and other cryptocurrencies, highlighting the government’s interest in exploring the potential of digital assets.

Despite these regulatory changes, President Milei continues to engage with the public on various national issues. He recently spoke at a ceremony commemorating Malvinas Day, which honors those who lost their lives during the Falklands War in 1982, demonstrating his ongoing commitment to addressing Argentina’s past and future challenges.

Argentina’s decision to implement registration requirements for cryptocurrency firms represents a critical step towards enhancing the regulatory framework for digital assets within the country. By aligning with FATF recommendations, Argentina aims to combat money laundering and terrorism financing more effectively while fostering a safe and transparent environment for the burgeoning crypto industry. 

As the global landscape for digital currencies continues to evolve, Argentina’s approach to regulation may offer valuable insights for other nations navigating the complexities of cryptocurrency oversight.