Argentina gives in to the FATF and will create a registry for bitcoin exchanges

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Key facts:
  • The bitcoin community in Argentina criticizes the creation of the registry.

  • The vote in the Senate had not taken place until now, because the FATF visited the country.

Officially, Argentina will create a registry of companies providing bitcoin (BTC) and cryptocurrency services that will be under the control of the National Securities Commission (CNV), as suggested by the International Financial Action Group (FATF). This follows the guidelines of the Financial Action Task Force (FATF), supposedly used to identify jurisdictions at risk of money laundering and terrorist financing.

In the special plenary session held this Thursday, March 14, the Senate of Argentina voted for of modifying the Money Laundering Law to introduce the figure of the list of exchanges, wallet providers and companies in the bitcoin industry.

The vote in the Senate was unanimous and promoted the modification, ending the legislative process that stagnated for several monthsafter the Chamber of Deputies gave half-sanction to the project that finally became law today.

With the modification, Argentina yields to the FATF recommendations for the regulation of the bitcoin ecosystem. Among them, the creation of a registry of service providers. This is to prevent money laundering and other crimes committed with crypto assets, in the opinion of the international entity.

As reported by CriptoNoticias, Argentina was forced to speed up the regulation of the Bitcoin ecosystem in this way due to the pressure generated for the visit of a FATF delegation.

It was then said that there were two ways to comply with what was requested by that entity. The first was through a presidential decree and the second through the Senate’s approval of the modification of the Money Laundering Law.

The registry of cryptocurrency providers will be controlled by the CNV, body in charge of managing matters related to securities and everything related to Argentine soil.

The law requires these companies to provide data and other personal information. All with the objective of “increasing transparency, traceability and monitoring of operations and users.”

Bitcoin community criticizes registration

After knowing the approval of the Senate to modify the law and authorize the creation of the registry of service providers with bitcoin, members of the community in Argentina They came forward to question the decision.

Adam Dubove, a bitcoiner, said that both independent exchangers and users of BTC and cryptocurrencies will be harmed by the regulation. As you see it, The rule “affects innovation in the sector and the privacy of individuals.”

Precisely by allowing the securities regulatory authority to access sensitive information of the exchanges and, consequently, of the users; This initiative is usually seen in the community as a way to violate privacysomething that, in contrast, Bitcoin defends.

In fact, Dubove said earlier in an opinion article that “the regulation imposes, on human and legal persons incorporated in Argentina or of foreign origin, that they buy or sell digital assets, a registration with the CNV and compliance “with onerous regulatory requirements that mainly affect companies smaller ones and to independent money changers.”

The bitcoiner predicts that, after the approval of this law, bureaucratic obstacles will be generated for new companies and smaller companies will be left without support capacity. He assures that there will be “greater friction for opening accounts and carrying out transactions.”

Non-compliant, it warns that “users will be exposed to central points of failure by discouraging individual custody.” “And the lobbying power of the local cryptocurrency industry to make laws tailored to them will be demonstrated,” he concluded.

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