Argentina regulators change their view on bitcoin
CNV lawyer classified his participation in the Tech Forum event as “revolutionary.”
“The current BCRA board wants to promote the cryptocurrency sector,” says a specialist.
With the growing adoption of bitcoin (BTC) and cryptocurrencies in Argentina, regulators’ view of the ecosystem is changing. This was made evident by a conference at Tech Forum, a cryptoasset industry congress that took place in Buenos Aires on October 19 witnessed by CriptoNoticias, in which businessmen and officials participated.
Gonzalo Chiarullo, general director of Investment Promotion and Foreign Trade of the Government of the City of Buenos Aires, who moderated the conference, introduced: “We all know that the National Securities Commission (CNV) is or was extremely against crypto development” .
Consequently, “many, including me, had to face summaries and even a criminal case, which did not prosper,” the official added. However, he rescued that the current situation is different, with the CNV innovating in regulations and participating in events such as Tech Forum.
Alejandro Rodríguez Ariola, lawyer for the regulator CNV, who participated in the conference, responded: “Yes, having the CNV here is already revolutionary.” “We are going to all the technological events (…). That gives you the mark, the proof, that we are in favor of innovation and technology,” he added.
As an example, Ariola indicated that last week they published the regulations for the registry of virtual asset service providers (PSAV), which is open to public consultation. “That is very important because we are waiting for contributions from the industry so that the standard is perfected,” he commented.
The statements took place within the framework of a debate at the event about the challenges and opportunities to balance regulation and innovation in financial markets.
“We know that it is a very important industry and the idea is for it to grow and develop, but always obviously within the framework of protecting investor rights with clear rules of the game,” the CNV lawyer explained.
Rodríguez Ariola says:
“We know that it is a business ecosystem that people have adopted, that is successful and works. We want it to grow, but with intelligent regulation because if not they will go to what is deregulated.”
Alejandro Rodríguez Ariola, lawyer in the analysis sub-management at the CNV.
As a spokesperson for the regulatory entity, Ariola also pointed out that they are working on asset tokenization regulations that will include security tokens (security tokens) in the first stage. “Real world assets (RWA) would be left for later, but I don’t rule it out; It is one of the topics we are talking about,” he said.
What will happen to the ban on banks selling bitcoin?
Teófilo Beato, director of Crecimiento Argentina, a movement that seeks to transform Argentina into a blockchain technology center, added at the conference that “today in Argentina the ‘crypto’ and ‘blockchain’ sector is bubbling. “We are going full steam ahead, with a very extensive, well-worked dialogue between the public and private sectors, which has led to the regulations being agreed upon with the industry and being implemented gradually so that they are assimilable,” he clarified.
With IGJ resolution No. 15/2024, “it has been allowed to build companies with capital contributions in cryptoassets that until not so long ago was crazy,” Beato noted. Given this, he distinguished that an LLC was established with the stablecoin USD Coin (USDC) and bitcoin (BTC). “That is something to highlight and celebrate,” he emphasized.
“The Central Bank is the one that is perhaps lagging behind,” declared the specialist according to his initiatives. In relation to this, he explained that “May is a particular month” for the organization.
In May 2021, the Central Bank of the Argentine Republic (BCRA) published a notice together with the CNV about the dangers that operations with cryptoassets such as bitcoin could entail. Then, in May 2022, it prohibited banks from offering these assets to their clients. And in May 2023, it also prohibited payment providers (PCPs), such as MercadoPago and Brubank.
“We believe that sooner rather than later these types of prohibitions, restrictions, will be lifted,” says Beato. Base it on the change of direction that is being seen at the state level. “The current board of directors of the Central Bank wants to promote the entire sector, as well as the entire government,” he stressed.
In tune with this, the same president of Argentina, Javier Milei, who has governed since the end of 2023, participated in the event giving a conference later, which focused on the importance of being “pro-tech” and deregulating.
“Cryptocurrency leaders intend to kick the board,” exclaimed Javier Milei
“The explosion in productive development in recent centuries is a testament not only to the greater the innovation, the greater prosperity, but also, and above all, that it is the advance of freedom that engenders innovation,” said Milei at Tech Forum.
The president indicated that, To the extent that civil and economic liberties have been assured as a natural right of man, the pace of technological development has accelerated. However, he warned that the State establishes regulations that end up making this dynamic impossible, so it is key to eliminate them.
“There has always been and will be a struggle between the private sector and the State, between those who innovate and those who regulate, between those who generate and those who confiscate, between those who explore the territory and those who then draw the maps and draw the limits between the supposed chaos of the reckless. and the order of the fearful,” Milei described.
The president continued that This bid today is made explicit in how some States of supposedly free nations treat their technological sectors.. “Political leaders infected with socialism impose regulation upon regulation and the visionaries of the sector have no choice but to flee,” he stated.
“As Ayn Rand said, when you realize that to produce you need to obtain authorization from those who produce nothing, then you can safely sign that your society is doomed.”
Javier Milei, president of Argentina.
Optimistically, the president remarked that “today was largely led by leaders of blockchain technology and cryptocurrencies who intend to shake things up in many aspects.” He considered in this regard that “going after the State is music to their ears.”
He highlighted as the most important aspect that this ecosystem proposes to separate political power from economic control. “This is complete proof that the individual said ‘enough to the State’ and decided to put a stop to it where it hurts the most, which is his pocket,” he remarked.
“Citizens of the world are tired of monetary policy and the economic shamanism of inflation,” he explained. For this reason, “we rulers cannot turn a deaf ear to the requests of the people who are crying out for less of the State,” Milei concluded from his position as the world’s first liberal-libertarian president.