The Argentine Chamber of Fintechs, a member-based organization whose aim is to advance the digitization and modernization of the financial services industry, has issued a series of recommendations for the upcoming regulation of virtual assets in the country. The proposed framework calls on the government to follow the recommendations of the FATF and calls for a clear definition of virtual assets and virtual asset service providers (VASPs).
Argentine Fintech Chamber advocates regulation
The Argentine Fintech Chamber, a group committed to modernizing the structure of financial service providers, issued his take on how the Argentine government should regulate cryptocurrency investments in the future. The proposal, which takes into account the increasing use of these assets in the country, sets out a number of key issues that the group believes should be pursued in order to better regulate cryptocurrency.
The first of them mentioned the need to follow the recommendations of the FATF (Financial Action Task Force), as Argentina is part of this group and will monitor the country’s status on this and other recommendations.
The proposal also addresses the need to define the concepts of Virtual Assets and Virtual Asset Service Providers (VASPs). The document states:
[These definitions] should be based on concepts broad enough to cover the constantly evolving new technologies and related activities and services.
Another recommendation concerns the legality of activities involving virtual assets. According to the text, crypto rules should also be explicitly defined in the law, as it would allow parties using these virtual assets to open bank accounts without being separated from the traditional banking sector. This would help VASPs not to be excluded as before happens in some countries.
Argentina still lacks clear crypto regulation
The Argentine Fintech Chamber notes that the introduction of cryptocurrencies in the country is flourishing without specific regulation, but welcomes “the beginning of an imminent regulatory process at regional and global level”, which led them to make these recommendations.
The cryptocurrency issue has reached the highest level in the country. In August Alberto Fernandez, the current President of Argentina, specified that he is open to the introduction of cryptocurrencies as legal tender in the country. However, he also stated that the topic was “unknown” to him. At the regional level, there are already some laws in selected regions that require cryptocurrency users to pay steer for their crypto holdings as they are considered international currencies.
What do you think of the recommendations of the Argentine Fintech Chamber for a regulatory framework for cryptocurrencies? Let us know in the comments section below.
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Source: Crypto News Austria