The Argentine securities regulator has created an innovation center to lead debates regarding regulated crypto investments.
The National Securities Commission (CNV), Argentina’s securities regulator, released an innovation center to encourage more discussions and conversations regarding digital assets and investments in financial technology, fintech.
This organization will connect private organizations and the entity to pave new ways to reach new fintech and crypto-regulated instruments in the market.
Argentine media highlighted that this creation happened because the National Securities Commission is implementing procedures to stimulate the arrival on the market of new investment instruments focused on financial technology and digital assets.
In addition, the innovation center will connect private investors with regulators to exchange information on the requirements that these items must meet to get launched on the market.
Measures against Scam Attacks
The most significant problem with the hub is the increasing rate of attacks related to crypto in the country since crypto adoption peaked.
Likewise, according to local sources, there are two goals behind regulating investments in digital assets in the country. One is the protection of investors looking to put funds into crypto markets by launching controlled products.
Another goal is the benefit that the national tax agency could get by improving tax collection due to user earnings with digital investment.
Furthermore, this innovation hub could usher in a new era of regulated crypto investment products in Argentina, opined Andrés Ponte, president of Matba Rofex, an investment brokerage company.
Also, in March, the Senate of the Argentine Republic yesterday gave the green light to a loan agreement to boost the debt of USD 45 billion with the International Monetary Fund (IMF), which got also connected to a provision that discourages the use of digital assets in the nation.
Likewise, in March, Argentina’s Financial Information Unit (FIU) started working to include entities connected to the digital asset industry in the list of companies subject to anti-money laundering reporting requirements.
Regulators Keep a Close Eye on Digital Assets
Regulators in other countries have also been improving their regulations to force crypto businesses to comply with AML and KYC standards.
As Decrypt recalled, the UK Financial Conduct Authority (FCA) already made the same move in March 2021. Since that time, businesses related to crypto-assets got required to file annual financial crime statements, statements that document, for example, the number of suspicious activities generated in the reporting period.
“This policy statement proposes that companies and crypto-asset businesses should get included in the scope of the return based on their business activities and potential money laundering risks,” the FCA said.
The United States and European countries have also been working on expanding the scope of their regulations to encompass the burgeoning digital currency sector.
Meanwhile, the Argentine government has been toughening its stance on the crypto industry. In February, the Argentine Secretary of Energy raised the cost of energy for Bitcoin miners. The economy minister said that more taxes should get implemented for crypto operations more recently.
By: Jenson Nuñez
