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- The proposal distinguishes between decentralized crypto-assets and centrally issued ones like USD Coin, subject to specific regulations.
- The project establishes governance mechanisms and licenses for digital assets, reflecting international standards and FATF recommendations.
The ONG Bitcoin Argentina is advocating for a legal framework that defines cryptocurrencies as digital assets, proposing regulations that facilitate operations within the industry. In response to regulatory changes this year, particularly under President Javier Milei’s administration, which introduced stricter controls, the ONG Bitcoin Argentina unveiled a draft law aimed at providing clarity and security for cryptocurrency users and businesses.
The initiative comes amidst calls from industry stakeholders for clearer regulations, prompted by government decisions that sparked criticism and discontent. In a Crypto NEWs Flash post we talked about how the law seeks to establish a secure 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, possess, operate, and dispose of decentralized cryptocurrencies such as Bitcoin and Ethereum. These assets would be classified separately from traditional financial assets, reinforcing protections for independent users who may or may not utilize centralized exchanges.
“All people have the right to develop, acquire, possess, have, operate and dispose of, without restrictions, bitcoin and other decentralized cryptoassets and to develop and operate on decentralized service platforms. The law protects the property and rights over crypto assets,” the text states in its Article 1.
The proposal distinguishes between decentralized crypto assets like Bitcoin and Ethereum, which are treated legally as currency without legal tender, and centralized issuance crypto assets like USD Coin (USDC) or Tether (USDT), which would be subject to specific regulations and obligations.
Moreover, the initiative outlines governance mechanisms for each digital asset, crucial for managing cryptocurrencies, public trust, and determining their utility, as we have previously detailed in Crypto News Flash.
Legal advisor Rosendo Gravanago emphasized the need for a foundational law that provides clear definitions and precise regulations, especially concerning whether these assets should be treated similarly to traditional financial instruments.
«The key point is to determine 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 base 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 Power. This regulatory framework aims to mirror criteria observed in other countries, such as the United States, where judicial decisions have clarified the application of securities laws to certain assets.
The proposal designates the National Securities Commission (Comisión Nacional de Valores – CNV) as the regulatory body overseeing crypto assets and establishes a Registry of Service Providers (Registro de proveedores de servicios basados en ellos – PSAV), aligning local regulations with recommendations from the Financial Action Task Force (FATF).
Despite some criticism from the Bitcoin community regarding its potential impact on innovation and individual privacy, particularly concerning anti-money laundering and counter-terrorism financing measures, the PSAV registration remains operational with 45 authorized companies, showing minimal disruption to the industry.
If enacted, the ONG Bitcoin Argentina’s draft would establish for the first time clear property rights for decentralized cryptocurrency users. Legally distinct from cash or other forms of traditional wealth, these assets would carry their own classification, ensuring clarity on obligations and regulations for digital wallets and service providers alike.
