Argentina's President Milei Stumbles on Bitcoin 🤦🏻‍♂️

Argentina Introduces Mandatory Cryptocurrency Registry

Argentina’s government, under President Javier Milei, has implemented a new regulation requiring a compulsory Registry of Virtual Asset Service Providers, creating controversy and concern within the crypto community both domestically and internationally.

Forbes Confirms CNV’s New Requirement

Forbes reported that the Comisión Nacional de Valores (CNV) now mandates individuals and businesses involved in various crypto services like buying, selling, and trading to register with the government. This regulation applies to local and foreign-based entities operating within Argentina.

CNV President Roberto E. Silva emphasized that unregistered entities would be unable to conduct business within the country.

Mixed Reactions to the Regulation

Critics contend that Milei’s decision contradicts his initial promises of economic freedom and currency diversification, which would have benefited Bitcoin and cryptocurrencies in Argentina. Manuel Ferrari, a Money On Chain protocol founder, expressed disappointment in the move, labeling it unnecessary and detrimental to crypto progress.

Nicolas Bourbon of KamiPay offered a different viewpoint, suggesting that the regulation serves international compliance requirements rather than directly targeting users.

Global Backlash and Discontent

Internationally, Bitcoin advocate Max Keiser and Argentine user Neo (@21Millones_BTC) condemned Milei’s decision, predicting negative consequences and practical implications on Bitcoin transfers via custodial apps like Bela and Strike.

Keiser criticized Milei for misunderstanding Bitcoin, while Neo highlighted the impact of the new policy on cryptocurrency transactions within Argentina.

Argentina’s Standing in the Crypto Industry

Argentina currently ranks 15th in the Chainalysis Global Crypto Adoption Index Top 20, emphasizing its role in the global crypto market. The introduction of this regulatory measure signifies a pivotal moment for Argentina’s crypto sector, with uncertain future implications.

The CNV’s initiative aligns with the Financial Action Task Force’s guidelines, but the response from the crypto community suggests a disparity between the government’s actions and Milei’s libertarian principles.