Argentina tightens regulations for virtual asset service providers

Argentina’s National Securities Commission (CNV) has introduced a regulatory framework for virtual asset service providers (VASPs) under General Resolution No. 1058, published on March 13, 2025.

The framework establishes stricter compliance requirements for crypto companies operating in the country, aiming to enhance transparency, security, and consumer protection.

The resolution builds on Law 27.739, passed in 2024, and mandates VASPs to segregate customer funds from company assets to prevent misuse, a measure inspired by past industry failures like the FTX collapse.

VASPs must also disclose operational risks to users and implement anti-money laundering (AML) and counter-terrorism financing (CTF) measures aligned with Financial Action Task Force (FATF) standards.

Additional requirements include maintaining reserve funds based on service type, conducting annual audits, and submitting regular reports to the CNV.

Companies must establish cybersecurity protocols and implement internal policies such as codes of conduct and claims management procedures.

The CNV consulted industry stakeholders while drafting these regulations to balance innovation with regulatory oversight.

CNV President Roberto Silva emphasised that the goal is to ensure compliance without imposing excessive costs on the industry.

However, some local crypto experts have criticised the absence of tax-related clarifications, arguing that digital assets are treated unfairly compared to traditional investments.

The new rules take effect on December 31, 2025, giving VASPs time to adapt their operations.

These regulations mark a significant step in Argentina’s efforts to regulate its growing cryptocurrency market amid rising global adoption and concerns over financial crime.

While some view these measures as necessary for market stability and consumer protection, others worry they could stifle innovation.

The CNV’s approach reflects a broader trend of governments worldwide seeking to regulate the crypto industry while addressing risks associated with its rapid growth.