The government of Argentina, headed by President Javier Milei, a libertarian and anarcho-capitalist, has enacted a new law requiring a mandatory Registry of Virtual Asset Service Providers.
The Comisión Nacional de Valores (CNV) made this announcement in late March, which goes against Milei's administration's previously assumed support for Bitcoin. It has also caused a stir of anger and anxiety among investors and cryptocurrency aficionados both inside and outside of Argentina.
Milei Makes His First Bitcoin Mistake
A registration process must be completed by businesses and individuals engaged in a variety of crypto-related services, including as purchasing, selling, sending, receiving, lending, or trading.
Milei, who took office in December 2023 with the goal of rebuilding and dollarizing the national economy, is criticized for this action, which they claim is a major retreat from the economic liberties he pledged.
This could increase the adoption of Bitcoin and other cryptocurrencies in Argentina. Manuel Ferrari, a co-founder of the Money On Chain protocol and a member of an Argentinean NGO, expressed his displeasure in an interview, saying, "It's a terrible idea to have a registry that enables the buying and selling of Bitcoin." In contrast to securities, bitcoin is money.
Ferrari's comments, which depart from Milei's purportedly libertarian beliefs, are in line with a wider view that this legislation is not only needless but harmful as well, favoring "state bureaucrats and an army of lawyers and useless people from the 'compliance industry'".
Co-founder of the KamiPay payments system Nicolas Bourbon provided a more balanced viewpoint, arguing that although Milei may not openly embrace Bitcoin, he respects currency freedom and that the legislation serves international institutions' needs rather than those of customers.
Neo (@21Millones_BTC), an Argentine Bitcoin user, expressed regret over the new policy's practical ramifications, pointing out that custodial apps like Strike and Bela have already limited Bitcoin transactions, which goes against the spirit of freedom associated with cryptocurrency.
Argentina's prominence in the global cryptocurrency sector is demonstrated by its ranking of 15th on Chainalysis' Global Crypto Adoption Index Top 20. With unclear long-term effects, the adoption of this legal framework is a turning point in the development of the nation's cryptocurrency market.
Although the Financial Action Task Force's recommendations are the target of the CNV project, the crypto community's quick response points to a discrepancy between the government's policies with President Milei's ostensibly libertarian beliefs.
BTC was trading at $66,964 at the time of writing.
April 2024, Cryptoniteuae