Bitcoin Argentina Proposes Regulation to Protect Decentralization and Public Trust
Bitcoin Argentina, a non-government organization, recently presented a draft bill aimed at regulating the cryptocurrency market in a way that maintains decentralization and reinforces public trust. The proposed legal framework was introduced by Bitcoin Argentina’s president Ricardo Mihura at LABITCONF 2023 in Buenos Aires on Nov. 10. Previously, Bitcoin Argentina had rejected the idea of regulating the industry. However, they now argue that it is necessary to preserve blockchain and hold bad actors accountable.
The proposed legal framework categorizes cryptocurrency platforms and service providers into three categories to establish property rights: decentralized, local centralized or willing to dialogue with authorities, and global centralized. Platforms falling under the centralized categories would be allowed to operate freely, but customers would have judicial protection in case of a company downfall.
Mihura emphasized that an outright ban on cryptocurrencies wouldn’t work due to the global nature of blockchain. He stated that it is more effective to propose regulations that offer the best protection to citizens.
Hot Take: Striking a Balance Between Regulation and Protection
Bitcoin Argentina’s proposed bill comes at a crucial time for Argentina, as the country faces economic challenges and an upcoming presidential election. The bill aims to strike a balance between regulating the crypto market and preserving decentralization while also addressing public trust and protecting consumers. This move could potentially set a precedent for other countries grappling with similar issues.
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