Argentina Strengthens Regulatory Requirements for VASPs

The CNV, Argentina’s securities regulator, has issued a new framework for VASP operations in the country, introducing prerequisites such as customer-exchange asset segregation and establishing new funds and security requirement.

Argentina Issues New Rules for VASP Operations

Argentina is catching up with other countries regarding its virtual asset service provider (VASP) regulatory requirements. On March 13, the Argentine securities regulator CNV published resolution 1058, which establishes a new set of compliance rules to allow the operation of VASPs in the country. The document comes as a follow-up to the approval of Law 27.739, which determined CNV as the organization in charge of VASP oversight.

The resolution establishes a more detailed set of compliance requirements for crypto companies, including the need for more extensive documentation and security plans, as well as establishing fund reserve levels for each class of VASP. Additionally, VASPs must now disclose the risks associated with their operations to their users to enhance user awareness and protection

The document also changes the current AML/TF policies to be more specific and aligned with the current requirements of the Financial Action Task Force (FATF).

One of the most relevant new features of the resolution lies in the proposed customer-exchange asset segregation, meaning that customer funds must be separated from exchange funds, seeking to protect customers from an FTX-like situation.

This same requirement was considered for inclusion during Brazil’s crypto law discussion, but it failed to pass as lawmakers discussed that it might stifle innovation.

The cryptocurrency industry helped design this document, as the CNV consulted several relevant actors in the cryptocurrency market to finalize these norms. Roberto Silva, President of the CNV, stated they “worked hard on this regulation with the goal of making it effective and complying with the law, maintaining a balance so as not to overregulate or impose unnecessary costs on the industry, promoting innovation.”

Nonetheless, local crypto insiders complained about the void regarding the crypto tax issues in the document, as digital assets are treated unfairly compared to other traditional investments.

The law will come into force on December 31, 2025, and VASPs will have to adapt to this new regulation.

Read more: Argentine Senate Passes Reform Creating Cryptocurrency Entities Registry