- Binance’s official registration in Argentina sparks concerns about potential data sharing with local financial authorities.
- The exchange is now required to follow Argentina’s anti-money laundering regulations and report certain transactions to local agencies.
The global cryptocurrency exchange, Binance, has made its official entry into Argentina by registering with the country’s National Securities Commission (CNV) as a Virtual Asset Service Provider (PSAV). While Binance has been widely used in Argentina for years, its recent official registration under Argentine law brings several new implications for local users.
Binance’s Registration and Its Impact on Users
Binance’s registration as a PSAV through its subsidiary, “Binance Services Latinoamérica SA de CV,” marks an important milestone in the exchange’s operations within Argentina. Despite this formal registration, the company remains headquartered abroad, meaning its core operations are not physically based within the country. However, this registration subjects Binance to local financial laws, particularly those aimed at combating money laundering and financial crime.
Argentina’s regulatory framework defines PSAVs as companies that provide services such as the custody, buying, and selling of virtual assets like cryptocurrencies. To operate legally in Argentina, even foreign exchanges like Binance must comply with local regulations. This includes registration with the CNV, which enforces strict rules, especially regarding anti-money laundering (AML) measures.
One of the critical requirements for PSAVs operating in Argentina is compliance with the country’s AML laws. Registered entities must report significant cryptocurrency transactions to Argentina’s Financial Information Unit (UIF), the body responsible for overseeing money laundering controls. For example, any operations involving virtual assets worth over approximately $1,000 USD must be documented and submitted to the UIF.
Reporting to Argentina’s Financial Authorities
While Binance’s registration with the CNV aligns it with local regulatory frameworks, questions have arisen regarding its obligations to Argentina’s tax authorities. In Argentina, exchanges are typically required to submit monthly reports to the Federal Administration of Public Revenue (AFIP) about users who meet certain financial thresholds. For instance, if an account has transactions exceeding $340 USD in a month or holds a balance over $580 USD, the exchange must report these details to the AFIP.
Currently, Binance operates from outside Argentina, and as of now, it is unclear whether the company must comply with this tax reporting system. However, given Binance’s recent registration as a PSAV and its growing presence in the country, it is expected that it will eventually start providing this financial data to Argentine authorities. This could impact the privacy of Binance users in Argentina, especially those conducting significant transactions on the platform.
Another critical aspect of Binance’s registration relates to Argentina’s asset regularization system, commonly referred to as “money laundering” or tax amnesty. This system allows individuals and companies to declare previously unreported assets, including crypto-assets, with minimal penalties under certain conditions. For amounts below $100,000 USD, no penalties are imposed, while amounts exceeding this threshold incur a 5% tax on the surplus.
Since Binance is now a registered PSAV in Argentina, users seeking to participate in the regularization of crypto-assets must use platforms that are officially recognized by the CNV. This makes Binance a viable option for those wanting to declare and “launder” their crypto holdings within the legal framework.
Binance’s formal entry into Argentina signifies a new era of regulatory oversight for cryptocurrency users. While the platform remains a powerful tool for crypto trading, it is now subject to local laws that aim to ensure financial transparency and combat illicit activities. This may lead to more stringent requirements for users, particularly when it comes to data sharing with Argentine financial authorities.