- The CNV issued new regulations for crypto exchanges in Argentina, requiring a minimum net worth of $170 million for large companies.
- The regulations aim to protect investors and foster growth while allowing public feedback before finalization.
- These steps come after major crypto scams, like RainbowEx and Knight Consortium, affected thousands of families.
Argentina’s securities commission – Comissión Nacional de Valores (CNV) – recently issued a new regulatory norm for the operation of cryptocurrency exchanges in the country. The new framework draft is publicly available for market consultation for 30 days.
The norm establishes a minimum net worth of $170 million for large companies operating in cryptocurrency transfers and custody of digital assets. Additionally, individuals are now forbidden from engaging in complex operations, like managing or providing financial services related to cryptocurrencies. Basic actions like buying crypto and transferring between wallets remain unaffected.
The CNV’s new regulations aim to guarantee that only established exchanges operate in the nation, as well as drive even more investment in Argentina’s cryptocurrency industry. The new regulatory norm is one of the major regulatory steps the country has had until now, and its democratic approach of allowing for feedback from companies and the public before finalizing the regulations shows a commitment to transparency rarely seen in other nations’ commissions.
Argentina is today one of the fastest-growing countries in cryptocurrency adoption. For this reason – Roberto Silva – President of the CNV was adamant that these new regulations do not get in the way of the crypto industry’s growth in the region.
Regulations Arrive Days After Major Crypto Scams in Argentina
This development comes just days after two major incidents involving unregulated cryptocurrency companies in the country. A company named RainbowEx grew in popularity, promising quick and easy gains. Unfortunately, it turned out to be a Ponzi scheme, affecting thousands of families in cities like Alta Gracia. Around 3,000 families invested in RainbowEx, only to find themselves scammed.
Similarly, the Knight Consortium scandal in San Pedro exposed the vulnerability of many investors. Knight Consortium promised a daily return of 1% in dollars but stopped paying out, leaving countless investors without their savings. Both of these scams highlight the urgent need for the CNV’s new regulations to protect investors and ensure only legitimate and financially stable exchanges operate in Argentina.
By setting a minimum net worth for large companies and restricting complex operations for individuals, the CNV aims to prevent such fraudulent activities and foster a more secure environment for cryptocurrency investments. This regulatory move is expected to strengthen the trust and credibility of Argentina’s burgeoning crypto market, attracting more investors and encouraging sustainable growth.
