- Argentina’s NGO, Bitcoin Argentina, pushes for a law defining cryptocurrencies as digital assets, fostering easier business operations within the industry.
- The draft law introduces a crypto-economic legal system and distinguishes types of tokens and coins, aiming for transparency and security in digital transactions.
Argentina is currently witnessing a significant shift in its approach to cryptocurrency regulation. Bitcoin Argentina, a leading NGO, has introduced a legislative proposal designed to simplify business activities within the cryptocurrency sector. This initiative, which seeks to establish cryptocurrencies as digital assets, extends beyond traditional anti-money laundering regulations.
Establishing a Crypto-Economic Legal System
At the core of this initiative is the creation of a “crypto-economic legal system” for digital assets. The proposed law aims to provide a robust legal framework for the use and transaction of cryptocurrencies, responding to the industry’s call for clearer regulations. This need became especially pronounced following the regulatory changes introduced by President Javier Milei’s administration, which had been met with significant criticism from the sector.
The draft law not only specifies the regulatory body but also categorizes different types of tokens and coins. It differentiates between decentralized crypto assets, like Bitcoin (BTC) and Ethereum (ETH), which for legal purposes are considered non-legal tender, and centralized crypto assets, such as dollar-linked stablecoins (USDC or USDT), which are subject to specific regulations and obligations.
Centralized crypto assets are defined as those that involve obligations publicly undertaken by issuers towards their subscribers or purchasers. These assets are intended to embody rights against issuers who have made commitments or raised legitimate expectations.
Governance and Oversight
Another critical aspect of the proposal is the governance mechanisms of each digital asset. The initiative seeks to distinguish how cryptocurrencies are managed, which in turn affects public trust and the fate of these coins. This differentiation is crucial as it influences whether an asset should be treated as a traditional financial asset or if it warrants a unique approach.
Rosendo Gravanago, a legal advisor specializing in IT law, crypto assets, and blockchain, emphasized the need for a baseline law that provides precise and concrete definitions. This step is crucial for understanding and categorizing digital assets correctly, ensuring they receive appropriate legal treatment.
Regulatory and Operational Framework
The proposal outlines that for these digital assets, the special regime in which they operate should not impede the global and pseudonymous provision and circulation of crypto values, nor the disintermediation and immediacy of the connection between issuers and investors.
An important goal of the legislation is to allow facilities in operations, including self-custody by investors and crypto-asset service providers, within a framework that permits verification of reserves. In this scenario, the law aims to protect the asset isolation concerning the custodian’s obligations.
As the proposal gains traction, it seeks to emulate some regulatory frameworks already effective in other countries, marking a significant advancement in Argentina’s approach to managing and regulating cryptocurrencies.
