In order for bitcoin exchanges to lawfully operate in Argentina, the government has started enforcing laws. Service providers of virtual assets are now required by Argentina's securities regulator, the Comisión Nacional de Valores (CNV), to follow guidelines laid out by the Financial Action Task Force (FATF).
Argentina has implemented new regulations to combat money laundering and terrorist financing, and one of those regulations is requiring certain businesses that deal with cryptocurrency to register with the government.
"Will not be able to operate in the country." Virtual asset service providers who do not register, said CNV President Roberto Silva.
Following the senate's approval of amendments to combat money laundering and terrorist funding on March 14, the execution of these regulations impacting crypto providers in Argentina gathered steam.
It was supposedly proposed that the rules pertaining to crypto users in Argentina be changed prior to Javier Milei's election as president in November 2023.
Many people who were into cryptocurrencies at the time looked up to Milei because of his apparently positive attitude toward Bitcoin. Nevertheless, Argentine digital assets' future has been cast into doubt by the FATF's new regulations.
It is unclear how these rules would affect businesses in Argentina and their clients who want to use their services.
The Argentinean software Strike, which allows users to transmit Bitcoin payments using the Lightning network, has removed the opportunity for users to deposit fiat currency into bank accounts.
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