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Bitcoin Argentina NGO Proposes Cryptocurrency Law for Clear Definition of Digital Assets
- The proposal distinguishes between decentralized cryptocurrencies and centrally issued ones such as USD Coin, which are subject to specific regulations.
- The project establishes governance and licensing mechanisms for digital assets, reflecting international standards and FATF recommendations.
The NGO Bitcoin Argentina is advocating for a legal framework that defines cryptocurrencies as digital assets, proposing regulations that facilitate operations within the sector. In response to regulatory changes this year, particularly under the administration of President Javier Milei, who introduced stricter controls, the NGO Bitcoin Argentina has introduced a bill aimed at ensuring clarity and security for cryptocurrency users and businesses.
The initiative comes amid calls from industry stakeholders for clearer regulations, prompted by government decisions that have sparked criticism and discontent. In a Cryptocurrency News Flash Post We talked about how the law aims to create a safe and transparent environment for cryptocurrency transactions, addressing concerns raised by stakeholders.
According to Article 1 of the draft, the law aims to protect the rights of individuals to develop, acquire, own, manage, and dispose of decentralized cryptocurrencies such as Bitcoin and Ethereum. These assets would be classified separately from traditional financial assets, strengthening protections for independent users who may or may not use centralized exchanges.
“All persons have the right to develop, acquire, own, have, manage and dispose of, without restriction, bitcoin and other decentralized cryptoassets and to develop and manage on decentralized service platforms. The law protects ownership and rights to cryptoassets,” the text states in its Article 1.
The proposal distinguishes between decentralized cryptocurrencies such as Bitcoin and Ethereum, which are legally treated as non-legal tender, and centrally issued cryptocurrencies such as USD Coin (USDC) or Tether (USDT), which would be subject to specific regulations and obligations.
Furthermore, the initiative outlines governance mechanisms for each digital asset, which are crucial for managing cryptocurrencies, public trust, and determining their utility, as we have previously detailed in Cryptocurrency Flash News.
Legal advisor Rosendo Gravanago stressed the need for a fundamental law that provides clear definitions and precise rules, in particular as to whether such activities should be treated similarly to traditional financial instruments.
“The key issue is whether we should consider them similar to a traditional financial asset and, if not, what treatment they should receive. It would be necessary to develop a basic law that includes more precise and concrete definitions,” said Rosendo Gravanago.
Additionally, the draft introduces licensing requirements for centralized assets, with regulatory oversight designated by the executive branch. This regulatory framework is intended to mirror criteria seen in other countries, such as the United States, where judicial decisions have clarified the application of securities laws to certain assets.
Argentina’s CNV is the body in charge of supervising cryptocurrency exchanges. Source: Télam
The proposal designates the National Securities Commission (National Commission for Values – CNV) as the regulatory body that supervises cryptocurrencies and establishes a Registry of Service Providers (Registro de fornidores de servicios basados en ellos – PSAV), aligning local regulations with the recommendations of the Financial Action Task Force (FATF).
Despite some criticism from the Bitcoin community regarding its potential impact on innovation and individual privacy, particularly in regards to anti-money laundering and counter-terrorist financing measures, PSAV registration remains operational with 45 licensed companies, with minimal impact on the industry.
If promulgated, the NGO Bitcoin Argentina the draft would establish for the first time clear property rights for users of decentralized cryptocurrencies. Legally distinct from cash or other forms of traditional wealth, these assets would have their own classification, providing clarity on obligations and regulations for digital wallets and service providers.
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