Argentina Tightens Regulations for Virtual Asset Service Providers (VASPs)

28-04-2025
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The Argentine Securities Regulator (CNV) has announced a new regulatory framework for virtual asset service providers (VASPs) aimed at increasing transparency and investor protection. Resolution 1058, issued on March 13, establishes new compliance rules under Law 27,739, which designates the CNV as the agency responsible for overseeing the cryptocurrency sector.

New Regulations for VASPs
The resolution requires VASPs to comply with several important conditions, including:

- Separation of assets between customers and exchanges: To avoid situations similar to the FTX collapse, customer funds must be completely separated from exchange funds.
- Fund reserve requirements: Each type of VASP must meet certain financial reserve levels to ensure liquidity and protect investors.

- Improved anti-money laundering (AML) and counter-terrorism financing (TF) policies: The new regulations will be adjusted to align with the standards of the Financial Action Task Force (FATF).

- Enhanced security and transparency: VASPs must provide detailed information about potential risks to users and establish a more rigorous security plan.

Challenges and perspectives from the crypto industry
Separation of assets between customers and exchanges was discussed in Brazil's crypto bill but was not passed due to concerns that it could stifle innovation. However, Argentina decided to adopt this regulation as a measure to protect investors.

CNV said it consulted with many parties in the crypto industry to finalize the framework. Roberto Silva, President of CNV, stressed that the new regulation is designed to strike a balance between compliance with the law and promoting innovation, avoiding over-regulation or unnecessary costs for the industry.

However, some crypto businesses in Argentina have expressed concerns about the gap in tax policies for digital assets, arguing that cryptocurrencies are being treated unfairly compared to other traditional investments.

When will it take effect
The new law will officially take effect from December 31, 2025, and VASPs will have to adjust their operations to comply with the new requirements. This is seen as an important step for Argentina in keeping up with international regulatory standards and creating a more transparent and secure crypto environment.