Argentina Tightens Crypto Regulations Amid Growing Adoption

Argentina's National Securities Commission (CNV) has finalized regulations for virtual asset service providers (VASPs) under General Resolution No. 1058, establishing clear operational guidelines for cryptocurrency exchanges and related platforms.

Published on March 13, the new rules require VASPs to comply with strict measures on registration, cybersecurity, asset custody, money laundering prevention, and risk disclosure. The CNV emphasized that these regulations aim to enhance transparency, stability, and user protection within the crypto ecosystem.

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. Registration with the country’s virtual asset provider registry (PSAV) has been compulsory since 2024, and under the updated framework, noncompliant companies risk having their registrations revoked or being legally blocked from operating.

The deadlines for compliance vary: individuals registered with the PSAV must meet the requirements by July 1, Argentina-based companies by August 1, and foreign-incorporated entities by September 1. CNV President Roberto E. Silva warned that failure to comply would result in companies being barred from operating in Argentina.

Argentina’s push for stronger crypto regulations began in 2023 when the CNV introduced registration requirements and brought crypto issuers under securities laws. This regulatory shift coincided with a surge in crypto adoption, driven largely by the Argentine peso’s rapid depreciation.

By mid-2024, many Argentines turned to stablecoins like Tether’s USDt as a hedge against inflation. A Chainalysis report from October 2024 found that Argentina had surpassed Brazil as the leading Latin American country for crypto inflows, with an estimated $91 billion in transactions between July 2023 and June 2024.

Despite controversies such as the LIBRA memecoin scandal involving President Javier Milei—who publicly endorsed the token before its value collapsed—crypto adoption in Argentina continues to rise.