Argentina Completes Regulations for Virtual Asset Service Providers

The National Securities Commission has approved General Resolution No. 1058, setting definitive guidelines for cryptocurrency service providers.

Argentina’s securities regulator has finalized regulations for virtual asset service providers (VASPs), outlining standards for conduct and custody requirements for cryptocurrency exchanges and other digital asset platforms.

Published on March 13 by the National Securities Commission (CNV) under General Resolution No. 1058, the rules establish obligations related to registration, cybersecurity, asset custody, money laundering prevention, and risk disclosure for VASPs operating in the country.

The regulations aim to ensure transparency, stability, and user protection within the crypto sector.

According to Argentine tax lawyer Diego Fraga, the guidelines mandate the separation of company and client funds, annual audits, and monthly reporting to the CNV.

Source: Diego Fraga

Since 2024, virtual asset service providers (VASPs) in Argentina have been required to register with the country’s registry for such entities, known as PSAV. Under the newly established regulations, noncompliant registrations may be revoked, and companies operating without proper registration could face court-ordered bans.

Registered individuals must comply with the new rules by July 1, while companies incorporated in Argentina have until August 1. Foreign-incorporated companies must meet the requirements by September 1.

"Those who fail to meet the established requirements and deadlines will not be permitted to operate in Argentina," stated Roberto E. Silva, president of the CNV.

Despite Past Controversies, Crypto Adoption Continues to Grow in Argentina

According to global law firm DLA Piper, Argentina’s push for clearer crypto regulations gained momentum a year ago when the CNV introduced registration requirements and clarified that crypto issuers would be subject to securities laws.

This regulatory shift occurred alongside a surge in crypto adoption, fueled in part by the rapid devaluation of the Argentine peso.

By mid-2024, more Argentines turned to stablecoins such as Tether’s USDT as a hedge against economic instability.

A report from Chainalysis in October 2024 revealed that Argentina had surpassed Brazil as the top Latin American country for crypto inflows, recording approximately $91 billion between July 2023 and June 2024.

Argentina tops Latin America’s crypto adoption list in terms of value received between July 2023 and June 2024. Source: Chainalysis 

Crypto adoption in Argentina continues to show positive trends despite the controversy surrounding President Javier Milei and the LIBRA scandal. Milei had publicly endorsed the memecoin before its sudden price drop, leading to allegations of a rug pull.