FATF Crypto Rules Likely to be Adopted by Argentina
Argentina’s top financial regulator pushes for adoption of FATF crypto regulations to secure IMF package, potentially integrating them into upcoming money laundering legislation.
Key Points
- Argentina’s top financial regulator urges adoption of FATF guidelines for crypto regulations.
- Compliance with FATF standards is seen as important for securing an IMF bailout package.
- Argentina may include crypto-related legislation in a money laundering bill instead of a dedicated “crypto law.”
- The CNV is in discussions with the Fintech Chamber of Argentina and likely to establish a registry system for virtual asset service providers (VASPs).
Argentina’s top financial regulator, Sebastián Negri, has expressed a need for the adoption of crypto regulations in line with the guidelines provided by the Financial Action Task Force (FATF), the international money laundering and terrorist financing watchdog. Negri, the President of the National Securities Commission (CNV), stated that compliance with FATF standards is urgent and emphasized the importance of evaluating Argentina’s regulatory system and the effectiveness of its regulations.
The #crypto regulation that is currently being worked on in #Argentina will be focused more on the activity of exchanges and less on tokens, per #CNV president Sebastian Negri’s statements.@Cryptoworldhelp pic.twitter.com/mvRZlMjhzC
— Crypto World (@Cryptoworldhelp) February 12, 2023
The FATF guidelines primarily focus on anti-money laundering protocols for virtual asset service providers (VASPs), introducing measures such as the Travel Rule. The Travel Rule requires VASPs to share information regarding originators and beneficiaries of transactions. The CNV chief’s comments indicate that Argentina’s move to adopt these regulations may be in pursuit of approval from the International Monetary Fund (IMF), as the country aims to secure an IMF financial bailout package.
Negri further mentioned that a dedicated “crypto law” may not be necessary in Argentina and that new crypto-related legislation could be included in an upcoming money laundering bill. The CNV is currently in discussions with the Fintech Chamber of Argentina, an organization representing domestic crypto exchanges. The CNV is likely to establish a registry system for VASPs, requiring them to obtain operating permits, as per FATF requirements.
“[Proposed crypto] regulations will be open to public consultation. The definition of a crypto service provider is very broad, ranging from individuals to multinational exchanges. There are different kinds of risk, so we must work on different regulatory requirements.”
FATF-style Crypto Regulations Incoming in Argentina
Argentina previously implemented crackdowns on crypto exchanges earlier this year. This sudden move is believed to have been motivated by the government’s desire to secure the IMF package. The country has been grappling with rising inflation, prompting many individuals to shift towards cryptocurrencies like USDT and Bitcoin (BTC).
Crypto adoption has gained traction due to restrictions imposed by Argentinian banks on foreign currency buying. In April, Bitcoin reached an all-time high against the Argentine peso.
FATF guidelines have already been integrated into national laws in various regions, such as the European Union, Japan, and South Korea. The FATF President, Raja Kumar, recently called on the G7 to regulate cryptocurrencies more effectively and put an end to “lawless spaces” in the financial world.
