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Argentina

Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#37
Version
Archived
Created
2025-04-12 06:39
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Live

Executive Summary

Retail cryptocurrency trading is allowed and regulated in Argentina, with the National Securities Commission (CNV) as the primary regulator overseeing Virtual Asset Service Providers (VASPs). VASPs must register with the CNV and the Financial Information Unit (UIF) and adhere to AML/CFT requirements. Key legislation includes Law N°27,739 and UIF Resolution 49/2024. Cryptocurrencies are treated as assets, not legal tender, and banks are restricted from offering crypto services.

Key Pillars

The primary regulator is the National Securities Commission (CNV), responsible for overseeing the crypto industry. Core compliance requirements include registration with the CNV and the Financial Information Unit (UIF), implementation of AML/CFT measures, KYC procedures, customer due diligence, risk assessment, transaction monitoring, and reporting of suspicious activities. VASPs are required to register with both the CNV and UIF, but there are no explicit licensing requirements mentioned beyond registration.

Landmark Laws

Law N°27,739 (March 2024): Designated the National Securities Commission (CNV) as the primary regulator for the crypto industry.
General Resolution N°994 (CNV): Established a mandatory registry for Virtual Asset Service Providers (VASPs).
Resolution 49/2024 (UIF): Mandates that VASPs registered with the CNV must also register with the UIF as reporting entities and implement AML/CFT measures.
Communique "A" 7506 (BCRA, May 2022): Prohibits banks from carrying out or facilitating crypto-asset transactions for their clients.

Considerations

Cryptocurrencies are classified as assets for tax purposes, subject to income and personal property tax. Profits from trading are taxable. The CNV and UIF are concerned with AML/CFT compliance. Banks and PSPs are restricted from offering crypto-asset transactions. A currency control environment and high inflation rates encourage crypto usage.

Notes

Argentina's high inflation and currency controls drive cryptocurrency adoption. The Milei administration confirmed that contracts can be legally agreed upon and settled in Bitcoin. Banks are prohibited from offering crypto services since May 2022 (Communique "A" 7506), and PSPs since May 2023. The CNV issued draft General Resolution N°1025 for public consultation in October 2024. An asset regularization program ("blanqueo") exists for undeclared crypto holdings.

Detailed Explanation

Retail cryptocurrency trading is permitted and regulated in Argentina. Cryptocurrencies are not legal tender but are widely used due to high inflation and currency controls. Since early 2024, the regulatory landscape has evolved significantly. Law N°27,739, enacted in March 2024, designates the National Securities Commission (CNV) as the primary regulator for the crypto industry. Consequently, the CNV established a mandatory registry for Virtual Asset Service Providers (VASPs) via General Resolution N°994, requiring registration or facing operational bans. Concurrently, the Financial Information Unit (UIF) issued Resolution 49/2024, mandating VASPs registered with the CNV to also register with the UIF as reporting entities, implementing robust AML/CFT measures, including KYC procedures. The CNV is developing operational rules for VASPs via draft General Resolution N°1025, issued for public consultation in October 2024, outlining requirements such as mandatory establishment in Argentina, minimum net worth, officer appointments, technical infrastructure standards, audits, and internal policies, with compliance deadlines potentially extending into mid-2025. A significant restriction prohibits banks (since May 2022 via Communique "A" 7506) and payment service providers (PSPs) offering payment accounts (since May 2023) from carrying out or facilitating crypto-asset transactions. Individuals must trade "on their own," typically through registered VASPs or P2P platforms. Cryptocurrencies are recognized as assets for tax purposes, with profits from trading subject to income tax and holdings potentially subject to personal property tax; an asset regularization program ("blanqueo") allows for the declaration of previously undeclared crypto holdings. Following a decree by the Milei administration in late 2023, contracts can be legally agreed upon and settled in Bitcoin or other cryptocurrencies. Argentinians can freely engage with cryptocurrencies personally, but VASPs are subject to increasing regulation under the CNV and UIF, focusing on registration, AML/CFT compliance, and operational standards. Traditional financial institutions remain barred from offering crypto services.

Summary Points

Okay, here's the regulatory analysis report on Retail_Trading_Status in Argentina, converted into a clear, well-structured bullet point format:

Argentina: Retail Cryptocurrency Trading Regulatory Status (April 12, 2025)

I. General Status

  • Allowed-Regulated: Retail cryptocurrency trading (buying, selling, holding) is permitted for individual citizens and residents.
  • Not Legal Tender: Cryptocurrencies are not legal tender in Argentina.
  • Widespread Use: Driven by high inflation, currency controls, and the desire for alternative stores of value.

II. Key Regulatory Bodies & Roles

  • National Securities Commission (CNV):
    • Primary regulator for the crypto industry.
    • Mandatory registry for Virtual Asset Service Providers (VASPs).
    • Developing detailed operational rules for VASPs.
  • Financial Information Unit (UIF):
    • Argentina's AML/CFT authority.
    • Requires VASPs to register as reporting entities.
    • Enforces AML/CFT compliance.
  • Central Bank of Argentina (BCRA):
    • Prohibits banks and payment service providers (PSPs) from facilitating crypto-asset transactions for clients.

III. Important Legislation & Regulations

  • Law N°27,739 (March 2024): Designated the CNV as the primary regulator for the crypto industry.
  • CNV General Resolution N°994: Established a mandatory registry for VASPs.
  • UIF Resolution 49/2024: Mandates AML/CFT compliance for VASPs, including KYC, customer due diligence, and reporting requirements.
  • BCRA Communique "A" 7506 (May 2022): Prohibits banks from facilitating crypto transactions.
  • BCRA PSP Restriction (May 2023): Prohibits Payment Service Providers (PSPs) from facilitating crypto transactions.
  • CNV General Resolution N°1025 (Draft): Outlines detailed operational rules for VASPs (currently in public consultation).

IV. Requirements for Compliance (VASPs)

  • Registration: Mandatory registration with both the CNV and the UIF.
  • AML/CFT Compliance:
    • Know Your Customer (KYC) procedures.
    • Customer due diligence.
    • Risk assessment.
    • Transaction monitoring.
    • Reporting of suspicious activities.
  • Operational Requirements (Proposed):
    • Establishment in Argentina (local entity or registered branch).
    • Minimum net worth.
    • Specific officer appointments.
    • Technical infrastructure standards.
    • Audits.
    • Internal policies.

V. Notable Restrictions & Limitations

  • Bank Restrictions: Banks cannot offer crypto trading directly or integrate buy/sell buttons into their platforms.
  • PSP Restrictions: PSPs cannot facilitate crypto transactions for their clients.
  • No Legal Tender Status: Cryptocurrencies are not mandatory for settling debts.

VI. Recent Developments & Changes

  • VASP Regulation (2024): Significant regulatory developments with the enactment of Law N°27,739 and subsequent CNV/UIF resolutions.
  • CNV Operational Rules (Ongoing): CNV is developing detailed operational rules for VASPs, with final regulations anticipated.
  • Asset Regularization Program ("Blanqueo"): Allows for the declaration of previously undeclared crypto holdings.
  • Use in Contracts Allowed: Contracts can be legally agreed upon and settled in Bitcoin or other cryptocurrencies.

Full Analysis Report

Financial Regulatory Analyst Report: Argentina - Retail Cryptocurrency Trading Status

Date: April 12, 2025

Topic: Retail_Trading_Status
Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued)

1. Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Retail cryptocurrency trading (buying, selling, holding) by individual citizens and residents is permitted in Argentina. Cryptocurrencies are not considered legal tender, meaning they are not mandatory for settling debts and are not issued by the Central Bank of Argentina (BCRA) [4, 10, 17]. However, they are not prohibited and are widely used, driven significantly by Argentina's high inflation rates, currency controls, and the desire for alternative stores of value [4, 9, 17, 18, 21]. Millions of Argentinians utilize cryptocurrencies for savings, remittances, and even daily transactions [10, 21].

While individual activity is allowed, the regulatory landscape has significantly evolved, particularly since early 2024, moving towards a more structured and regulated environment for service providers. Key developments include:

  • VASP Regulation (CNV): Law N°27,739, enacted in March 2024, designated the National Securities Commission (Comisión Nacional de Valores - CNV) as the primary regulator for the crypto industry [5, 8]. Subsequently, the CNV established a mandatory registry for Virtual Asset Service Providers (VASPs) via General Resolution N°994 [5, 18]. This requires entities offering services like crypto exchange (crypto-fiat and crypto-crypto), transfer, custody, or related financial services to register or face operational bans [8, 18].
  • AML/CFT Framework (UIF): Concurrently, the Financial Information Unit (Unidad de Información Financiera - UIF), Argentina's AML authority, issued Resolution 49/2024 [2, 5]. This resolution mandates that VASPs registered with the CNV must also register with the UIF as reporting entities [5, 11]. They are obligated to implement robust Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) measures, including Know Your Customer (KYC) procedures, customer due diligence, risk assessment, transaction monitoring, and reporting of suspicious activities [2, 3, 11, 12, 15]. Reporting thresholds for transactions are also established, often linked to the minimum wage [2].
  • Operational Requirements: The CNV is further developing detailed operational rules for VASPs. A draft (General Resolution N°1025) was issued for public consultation in October 2024, outlining requirements such as mandatory establishment in Argentina (as a local entity or registered branch), minimum net worth, specific officer appointments, technical infrastructure standards, audits, and internal policies [5, 18]. Final regulations based on this draft are anticipated, with compliance deadlines potentially extending into mid-2025 [5, 8].
  • Bank Restrictions: A significant restriction exists for traditional financial institutions and payment service providers (PSPs). The BCRA explicitly prohibits banks (since May 2022 via Communique "A" 7506) and PSPs offering payment accounts (since May 2023) from carrying out or facilitating crypto-asset transactions for their clients [1, 6, 7, 13, 19]. This means banks cannot offer crypto trading directly or integrate buy/sell buttons into their platforms. Individuals wishing to trade must do so "on their own" [6], typically through registered VASPs or P2P platforms [1].
  • Taxation: Cryptocurrencies are recognized as assets for tax purposes. Profits from trading are subject to income tax, and holdings may be subject to personal property tax [4, 7, 9, 20]. An ongoing asset regularization program ("blanqueo") allows for the declaration of previously undeclared crypto holdings [2].
  • Use in Contracts: Following a decree by the Milei administration in late 2023, it was confirmed that contracts can be legally agreed upon and settled in Bitcoin or other cryptocurrencies, reaffirming principles of contractual freedom [1, 8, 21].

In summary, while Argentinians can freely engage with cryptocurrencies personally, the platforms facilitating these activities (VASPs) are subject to an increasingly comprehensive regulatory framework under the CNV and UIF, focusing on registration, AML/CFT compliance, and operational standards. Traditional financial institutions remain barred from offering crypto services.

3. Relevant Excerpts from Sources:

  • On Legality for Individuals: "While it is not “illegal” to buy and hold Bitcoin and crypto in Argentina, cryptocurrencies are not recognized as legal tender in Argentina." (Source: Cointelegraph [1]) / "Yes, Argentina allows the use and trading of crypto assets. However, crypto assets are not recognized as legal tender in Argentina." (Source: Sumsub [17])
  • On VASP Regulation (CNV): "Shortly after the enactment of Law N°27,739 on March 15, 2024, which designated the CNV as the regulatory authority for the crypto industry, the CNV issued General Resolution N°994. This resolution established a mandatory registry for VASPs." (Source: DLA Piper [5])
  • On AML/CFT Regulation (UIF): "Argentina's Financial Information Unit introduced Resolution No. 49/2024 in March 2024. This resolution enforces stringent compliance requirements on Virtual Asset Service Providers to prevent money laundering, terrorism financing..." (Source: Forbes [2]) / "Resolution 49/2024 by the Financial Intelligence Unit (UIF): This resolution designates VASPs as reporting entities to the UIF, adding obligations such as KYC procedures, transaction monitoring, and reporting requirements." (Source: Cardinals Law Firm [11])
  • On Bank Restrictions (BCRA): "Payment service providers that offer payment accounts (Proveedores de Servicios de Pago que Ofrecen Cuentas de Pago, PSPCPs) may not carry out transactions or allow their clients to make them when those transactions involve digital assets—including crypto assets—not regulated by a national authority or authorized by the BCRA." (Source: BCRA [6]) / "...the Central Bank of Argentina (the "BCRA"...) published Communique "A" 7506... imposing a "ban" on operations with crypto assets... Specifically, the BCRA established that "financial institutions may not carry out or facilitate transactions with digital assets –including crypto assets..." (Source: Marval, O'Farrell & Mairal [13])
  • On Use in Contracts: "Argentina officially endorsed using Bitcoin in legally binding contracts. Argentina's foreign minister, Diana Mondino, in a Dec. 21, 2023 post on X (formerly Twitter), said, “We ratify and confirm that in Argentina, contracts can be agreed in Bitcoin,”..." (Source: Cointelegraph [1])

4. Source Links:

  1. Cointelegraph (Overview & Legality/Contracts): https://cointelegraph.com/news/cryptocurrency-regulations-argentina-guide
  2. Forbes (UIF Resolution 49/2024 & Blanqueo): https://www.forbes.com/sites/digital-assets/2024/11/02/what-crypto-regulations-mean-for-providers-and-users-in-argentina/
  3. Global Law Experts (VASP Requirements): https://www.globallawexperts.com/News/crypto-licence-in-argentina
  4. Freeman Law (Legality & UIF Definition): https://freemanlaw.com/argentina-cryptocurrency/
  5. DLA Piper (Law 27,739, CNV/UIF Resolutions, GR 1025): https://www.dlapiper.com/en/insights/publications/2024/12/argentina-begins-establishing-a-comprehensive-framework-for-crypto-assets
  6. BCRA (PSP Restrictions): https://www.bcra.gob.ar/Noticias/PSP-no-realizar-operaciones-criptoactivos-permitir-clientes.asp
  7. Vixio (BCRA Bank Restrictions & IMF Context): https://vixio.com/insights/argentine-crypto-rule-is-blow-to-mainstream-adoption-but-wont-stop-it/
  8. Coinfomania (CNV Registry & Milei Admin): https://coinfomania.com/cryptocurrency-regulations-in-argentina/
  9. Bitcoin.com (Taxation & Inflation Hedge): https://news.bitcoin.com/best-crypto-exchanges-in-argentina/
  10. CoinStats (Legality & Regulatory Bodies): https://coinstats.app/blog/cryptocurrency-regulations-in-argentina/
  11. Cardinals Law Firm (UIF Resolution 49/2024 Details): https://cardinals.law/insights/crypto-license-requirements-in-argentina
  12. Binance Square / Cuque-rigth (UIF Reporting): https://www.binance.com/en/square/post/3171585727387
  13. Marval, O'Farrell & Mairal (BCRA Communique A 7506): https://www.marval.com/publicacion/bcra-bans-financial-institutions-from-carrying-out-or-facilitating-their-clients-crypto-assets-transactions-14081
  14. Sumsub (Legality & Law 27,739 Overview): https://sumsub.com/blog/crypto-compliance-in-argentina/
  15. Chambers and Partners (VASP Definition & CNV Consultation): https://practiceguides.chambers.com/practice-guides/fintech-2025/argentina/trends-and-developments
  16. Worldcoin (BCRA Bank Restrictions & Adoption Context): https://worldcoin.org/articles/argentina-cryptocurrency-legislation
  17. WSC Legal (Taxation): https://wsc.legal/en/crypto-assets-taxation/
  18. Elliptic (Use in Contracts & Milei Context): https://www.elliptic.co/blog/will-argentina-become-the-first-crypto-economy

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