Argentine regulator develops requirements for cryptocurrency exchanges

The National Securities Commission of Argentina (CNV) is working to create requirements for cryptocurrency companies and is asking lawmakers to expand their powers.

CNV President Sebastian Negri said that after the collapse of the FTX exchange, there was a need to develop special rules that must be observed by cryptocurrency services. With digital assets enjoying increasing popularity among Argentines, local traders have been hit hard by FTX’s actions. According to media reports, many local marketplaces are facing large outflows of funds.

Therefore, cryptocurrency companies must prove their solvency and protect customers from the risks of losing funds due to bankruptcy, the official said. First of all, regulatory rules will focus on cryptocurrency exchanges and services, and not on issuers of crypto assets. The agency will create a working group that is going to discuss the proposed rules with industry participants. CNV is also seeking to expand its powers to regulate the cryptocurrency industry in the country. The bill proposed by CNV will be voted on in Congress in the coming weeks.

The Argentine government is looking to increase regulation of the crypto industry ahead of a Financial Action Task Force (FATF) visit to the country scheduled for September. Officials and regulators are inclined to ensure that crypto companies comply with the requirements that apply to the traditional financial market. First of all, this is the introduction of the KYC (Know Your Customer) procedure, transparent business conduct and reporting on suspicious transactions in the amount of more than $1,000.

At the end of last year, the Argentine Senate began discussing a bill to regulate the advertising of cryptocurrency products and services. Recently, the Argentine authorities proposed to oblige the inhabitants of the country to declare income in crypto assets.