Opposition to Argentina’s Proposal for Cryptocurrency Exchange Registration

• NGO Bitcoin Argentina opposes CNV’s proposal for a digital asset service provider registry, citing market distortion concerns.
• The NGO questions CNV’s ability to oversee global platforms effectively, highlighting unrealistic expectations of regulatory supervision.

The NGO Bitcoin Argentina recently issued a statement opposing the National Securities Commission (CNV) of Argentina’s proposal to create a registry for digital asset service providers (PSAV). The organization argues that this registry could lead to market distortions and inefficiencies.

According to ETHNEws , the proposed registry introduces significant risks by potentially imposing barriers in a sector that currently operates effectively without them. The statement explains that the market is already functioning well and is neither in crisis nor in an emergent state. 

“The present, is not a future, non-existent, uncertain or new market, nor in crisis or emergency, but an existing one that works well,” they clarified, ‘while the new rules will benefit some players in the ecosystem, it reduces the emergence of others and will not prevent the emergence of future scams,’ they added.

It also mentions that while the new rules might benefit some ecosystem players, they could limit the entry of others and fail to prevent future fraudulent schemes.

The statement further expresses concerns that the registry might compromise both the CNV and users by giving a misleading impression of security and regulatory oversight in a market known for its inherent risks and global scale.

“This presents a risk for the CNV itself and for users, as it is not only inefficient in providing greater security tools to the latter, but will even create in them a false sense of security and supervision by the seal of the CNV, in a market that is eminently risky, asymmetric, global and unfathomable,” the statement reads.

Additionally, Argentina suggests that rejecting the law and confining its scope to Anti-Money Laundering and Counter-Terrorism Financing would be more suitable.

Ricardo Mihura, president of Bitcoin Argentina, emphasizes the importance of maintaining deregulation, which has supported the growth of a robust ecosystem.

He critiques the CNV’s move away from this approach, arguing that the proposed regulations would unnecessarily complicate the sector for small businesses and entrepreneurs, increasing their risks and regulatory costs.

Mihura adds: “We cannot understand how the CNV chooses, in the field of bitcoin and cryptoasset services, to opt out of the government’s deregulatory approach to propose an inefficient regulatory burden that has the immediate consequence of expelling or dragging into illegality small companies and self-employed people in the sector, and also hindering, and adding regulatory risks and costs to the birth of new projects”.

Rodrigo Andragnes, founder of the NGO, recommends taking necessary technical time to evaluate whether the regulation of PSAVs would indeed be beneficial to the community.

The proposal also points out the unrealistic expectation that the CNV could effectively oversee global cryptocurrency exchange platforms , ensuring the integrity of their operations and the projects offered, which the organization finds unlikely.

Bitcoin (BTC) is currently trading at $97,833 USD, reflecting a 1.80% increase in the last 24 hours. Over the past month, Bitcoin has surged by 42.30%, and its year-to-date performance shows a significant gain of 131.41%, signaling strong bullish momentum.