Argentina’s National Securities Commission (CNV) has put forward a groundbreaking proposal for a new regulatory framework governing Virtual Asset Service Providers (PSAVs). This move comes as part of the CNV’s efforts to enhance oversight and accountability within the digital asset sector in Argentina.
The proposed regulations aim to establish clear guidelines for the operation of PSAVs in the country, with a focus on fostering transparency, compliance, and innovation while ensuring market stability and investor confidence. The CNV has opened a 30-day public consultation period for stakeholders to provide their input and recommendations on the new framework through a “Participative Elaboration of Standards” approach.
Under the proposed regulations, PSAVs will be categorized based on their specific activities, including exchanging virtual assets for legal tender, trading between different virtual assets, transferring virtual assets, holding and/or managing virtual assets, and providing financial services related to the offering and/or sale of virtual assets by issuers. Only individuals engaged in Categories 1 and 2 will be permitted to conduct their activities under the new framework.
PSAVs will be required to maintain a minimum asset threshold that varies by category, potentially reaching up to $150,000. Providers must also appoint internal compliance officers and public relations representatives to ensure adherence to the regulatory requirements. Additionally, regular information reports detailing customer counts, transaction volumes, and the most frequently traded virtual assets will need to be submitted to the CNV.
The CNV’s initiative to regulate PSAVs represents a significant step forward for Argentina’s digital asset industry. By introducing specific compliance requirements and categorizing PSAVs, the regulatory framework aims to strengthen market integrity, promote innovation, and protect investors. The commission’s emphasis on balancing effective regulation with a dynamic and competitive marketplace underscores its commitment to responsible growth within the sector.
As the proposal undergoes public consultation and potential refinements, the CNV seeks to establish a resilient system that promotes ethical and successful operations for PSAVs in Argentina. By incorporating feedback from stakeholders, the commission aims to set clear guidelines for digital asset services to operate ethically and responsibly within the country’s financial landscape.
In conclusion, the CNV’s collaborative and consultative approach to regulating PSAVs reflects its dedication to harmonizing innovation with investor protection. By positioning Argentina as a favorable jurisdiction for responsible digital asset services, the CNV aims to contribute to the sustainable growth and stability of the country’s digital asset industry. This regulatory initiative underscores the commission’s commitment to fostering transparency, compliance, and innovation while safeguarding the interests of all market participants.