As part of a program to strengthen anti-money laundering measures, Argentina's regulator has set new rules for companies offering cryptocurrency services in the country.
Argentina is implementing reforms to comply with the Financial Action Task Force's (FATF) anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements, Yahoo! Finance reported.
The National Securities Commission (CNV) has required crypto service providers to comply with FATF recommendations. Cryptocurrency exchanges and companies that provide services for trading or exchanging virtual assets must register their operations in Argentina.
CNV President Roberto Silva said that unregistered cryptocurrency service providers will not be able to operate in the country. Such measures were taken against the backdrop of the approval on March 14 of amendments to laws aimed at preventing money laundering and terrorist financing.
The amendments to Argentina's legislation were developed prior to the election of Javier Milei as president. Interestingly, Miley supported the position of cryptocurrency advocates during his campaign, but the FATF compliance requirements have led to concerns about the successful development of the cryptocurrency industry in Argentina.
It is unclear how the new stringent requirements will affect the operations of cryptocurrency exchanges in Argentina. It is also unclear how clients using crypto transaction services will react.
One of the first manifestations of the restrictions was the disabling of the ability of Argentine users to deposit fiat money into their accounts on Strike (an app that facilitates Bitcoin payments through the Lightning network).
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