Argentina has made significant progress in building regulations for the ever-changing virtual asset service providers (VASPs) industry.
According to the Argentine government’s statement, more than 100 VASPs have recently successfully registered with the National Securities Commission (CNV) by the new VASP Registry’s regulations.
According to CNV officials, “we currently have 101 registrations, 95 of which are companies and 6 of which are individuals”.
Legislation emboldens regulatory powers
The increase in registrations follows the approval of Law No. 27,739, enacted on March 14, 2024, and aimed at reorganizing Argentina’s National AML/CFT Regulatory System.
This law represents a significant reworking of the CNV’s capabilities, including the establishment of the VASP Registry, which is essentially required for the inspection of the fast-developing virtual asset market.
In its function as the VASP regulator, the CNV started and completed the VASP Registry project from start to finish in 2024, and as the calendar year comes to a close, we are glad to provide the following data, according to a post on the official government website.
Public consultation for the regulatory framework
The CNV is currently assessing the results of the public consultation for the VASP Regulatory Project, which was launched on October 17, 2023, under RG No. 1025.
The commission claimed that its primary goal is to create and implement regulations that provide broad standards for conduct and specific operational requirements for VASPs.
Roberto E. Silva, president of the CNV, stated that finding a balance between regulatory limits and innovation in the digital economy is critical.
Silva stated that the goal of our regulation is to “rigorously adhere to the rules of the law while avoiding imposing an unnecessary burden on the industry”.
Varied registered entities
There are 20 external companies and 75 local firms among the total registered entities, including some of the most important global exchanges that operate in Argentina.
Silva emphasized the importance of including big worldwide VASPs on the list, stating, “This registration promotion and VASP regulation under the Law No. 27,739 framework has been a whole task.”
It is just necessary to include the big international players working in Argentina.
Engagement in collaboration and training
The CNV is not inert; they have created a workplace that is always upgrading its regulatory quality.
They have broadened their regulatory agenda by establishing partnerships with other government agencies.
This package includes training seminars for the professionals in charge of monitoring and regulating these new digital services.
The resulting pledge goes a long way toward assuring that the agency responds to market developments while also addressing difficulties that arise.
New approaches for VASP regulation
The Commission’s work is focused on the future since they are now reviewing new rules relating to supervision, regulation, inspection, and enforcement, which include VASPs.
This is with the idea of constructing a framework that achieves both goals: protecting the financial system while also creating a conducive atmosphere for innovation in the virtual asset market.
None of the preceding assertions stems from my failure to remember the partnership and promotion of digital currencies, as well as the CNV’s management of regulatory action concerning or in developing the correct tracks for diffusion that other nations may follow to secure their digital bequest.
Even as the country makes progress in the global regulatory arena, both digital asset market participants and consumers may experience dramatic consequences in the form of developments that are likely to occur in all markets.
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