Argentina

## Retail Trading Status: Argentina

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Status:** Allowed-Regulated

**Narrative Explanation:**

Retail cryptocurrency trading by individual citizens and residents in Argentina is legally permitted. However, the regulatory landscape has been evolving, moving towards a more defined framework, particularly concerning Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures, as well as consumer protection. While there isn't a complete, standalone crypto-specific regulatory regime comparable to traditional financial assets, key regulatory bodies have issued directives and established requirements for entities operating within the crypto space, effectively making it a regulated activity.

Historically, Argentina has seen high adoption rates for cryptocurrencies, partly driven by economic instability and currency controls. For a considerable period, the sector operated with minimal specific regulation. However, concerns about potential risks, including money laundering, tax evasion, and investor protection, prompted authorities to take action.

The **Central Bank of Argentina (BCRA)** has issued communications primarily focused on financial institutions, limiting their ability to offer crypto-related services directly. For instance, in May 2022, the BCRA prohibited financial entities from offering services with digital assets whose returns are determined by fluctuations in crypto assets, including those transacted through payment service providers (PSPs). This, however, did not ban individuals from trading cryptocurrencies through other platforms.

A significant development has been the increasing role of the **National Securities Commission (CNV)** and the **Financial Information Unit (UIF)**. The CNV has been working on a framework for virtual asset service providers (VASPs). In March 2024, the Argentine Senate approved a modification to the existing Anti-Money Laundering law, which includes the creation of a Registry of Virtual Asset Service Providers (VASPs) under the purview of the CNV. This registry is mandatory for all entities and individuals offering services related to virtual assets in Argentina. This move aligns Argentina with the Financial Action Task Force (FATF) recommendations.

The **UIF** has also established specific AML/CFT obligations for VASPs. Resolution 70/2023, for example, updated the guidelines for obliged subjects in the virtual asset sector, requiring them to implement robust customer due diligence (KYC) measures, transaction monitoring, and reporting of suspicious activities. These requirements are similar to those imposed on traditional financial institutions.

Furthermore, the **Argentine tax authority (AFIP)** has also taken steps to include cryptocurrencies within the tax framework. Gains from cryptocurrency transactions are generally subject to income tax, and holdings may be subject to wealth tax, although the specifics can be complex and subject to interpretation.

While individuals are free to buy, sell, and hold cryptocurrencies, they are increasingly interacting with a regulated environment, especially when using established exchanges and platforms that are now required to comply with CNV and UIF regulations. These platforms must implement KYC procedures, meaning users need to provide identification and other personal information to trade. General consumer protection laws also apply, and authorities have issued warnings about the risks associated with cryptocurrency investments, emphasizing their volatility and the potential for fraud.

The overall trend indicates a move away from an unregulated space towards a regulated one, primarily driven by AML/CFT concerns and the need to align with international standards. The creation of the VASP registry by the CNV is a cornerstone of this regulatory approach.

**Relevant Text Excerpts and Sources:**

*   **National Securities Commission (CNV) - Creation of VASP Registry (March 2024):**
    *   *Summary:* The Argentine Senate approved modifications to the Anti-Money Laundering Law, which includes the creation of a Registry of Virtual Asset Service Providers (VASPs). This registry will be managed by the National Securities Commission (CNV) and will be mandatory for all entities and individuals offering services related to virtual assets in Argentina. This measure aims to align Argentina with FATF recommendations.
    *   *Source:* While the direct legislative text is the primary source, reputable financial news outlets and legal firms widely reported this. For example, a report by a major accounting firm or legal news portal would detail this. (A specific link to the official gazette or CNV resolution would be ideal if readily available through a quick search, but often these are behind paywalls or in Spanish only. Reputable secondary sources often provide accessible summaries).
    *   *Example (Illustrative - actual wording may vary):* "The Argentine National Congress has sanctioned Law [Number], amending the Law on Prevention of Asset Laundering, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction, incorporating Virtual Asset Service Providers (VASPs) as obligated subjects before the Financial Information Unit (UIF) and creating a Registry of VASPs under the National Securities Commission (CNV)."

*   **Financial Information Unit (UIF) - AML/CFT Regulations for VASPs:**
    *   *Summary:* The UIF has issued resolutions (e.g., Resolution 70/2023, and subsequent updates) outlining the specific AML/CFT obligations for VASPs. These include requirements for customer due diligence (KYC), risk assessment, ongoing monitoring of transactions, and reporting of suspicious operations.
    *   *Source:* Official UIF website, resolutions section.
    *   *Example (Illustrative - actual wording may vary):* "Resolution 70/2023 of the Financial Information Unit establishes the guidelines that Virtual Asset Service Providers must comply with regarding customer due diligence, risk management systems, and the reporting of suspicious transactions to prevent money laundering and terrorist financing."
    *   *URL (Example of where to find such resolutions):* `https://www.argentina.gob.ar/uif` (Navigate to Normativa or Resoluciones section)

*   **Central Bank of Argentina (BCRA) - Communication on Financial Entities and Crypto Assets (May 2022):**
    *   *Summary:* The BCRA issued Communication "A" 7506 in May 2022, which restricted financial entities from offering services related to digital assets not regulated by the central bank, including cryptocurrencies. This aimed to mitigate risks within the traditional financial system but did not prohibit individuals from trading cryptocurrencies through other means.
    *   *Source:* Official BCRA website, communications section.
    *   *Example (Illustrative - actual wording may vary):* "Financial entities may not carry out or facilitate their clients to carry out operations with digital assets –including cryptoassets and those whose yields are determined by the variations that they register– that are not authorized by a national regulatory authority and by the Banco Central de la República Argentina."
    *   *URL (Example of where to find BCRA communications):* `https://www.bcra.gob.ar/` (Navigate to Normativas, Comunicaciones)

*   **General Warnings and Investor Protection:**
    *   *Summary:* Both the CNV and BCRA have periodically issued warnings to the public regarding the risks associated with investing in cryptocurrencies, such as high volatility, lack of specific investor protection mechanisms in some cases, and the potential for fraud.
    *   *Source:* Press releases and official statements on CNV and BCRA websites.
    *   *Example (Illustrative - actual wording may vary):* "The National Securities Commission warns investors about the high risks involved in operations with crypto assets, given their volatility, the complexity of the underlying technology, and the potential for illicit schemes. It is recommended to exercise caution and thoroughly research before investing."

**Direct URL Links to Sources:**

*   **National Securities Commission (CNV):** `https://www.argentina.gob.ar/cnv`
*   **Financial Information Unit (UIF):** `https://www.argentina.gob.ar/uif`
*   **Central Bank of Argentina (BCRA):** `https://www.bcra.gob.ar/`
*   **Official Gazette of the Argentine Republic (Boletín Oficial):** `https://www.boletinoficial.gob.ar` (for legislative texts, though can be difficult to search without specific law numbers/dates)
*   **Reputable Legal/Financial News (example for finding analysis on new laws):** Sites like Lexology, Mondaq, or the Argentinian sections of major international news outlets (e.g., Reuters, Bloomberg) often provide English summaries and analyses of regulatory changes. For instance, a search for "Argentina VASP registry law 2024" on these platforms would yield relevant articles.

**(Please note: While direct links to specific resolutions or laws are ideal, they can sometimes be difficult to locate or may be in Spanish. The main regulatory body websites are provided as starting points for verification.)**