Bitcoin
Argentina seeks to tame cryptocurrency market as money laundering fears draw scrutiny
July 18 (Reuters) – A new law could help Argentina regulate its burgeoning cryptocurrency market as the country seeks to reduce risks such as money laundering associated with digital assets, experts say.
Last year, Argentina saw $85.4 billion in cryptocurrency transactions, making it one of the world’s biggest crypto havens, according to data platform Chainalysis, as Argentines seek to combat triple-digit inflation and a struggling currency.
On Wednesday, the Argentine government signed a fiscal package which includes tax amnesty for individuals who declare up to US$100,000, including registered crypto assets.
Roberto Silva, president of the National Securities Commission, said the amnesty could ease pressure from the Financial Action Task Force (FATF), an organization linked to the World Bank, IMF and United Nations, to regulate Argentina’s cryptocurrency market.
“Today, we are focused on changing everything that has to do with money laundering and reporting entities,” Silva said.
The FATF has threatened to move Argentina to its grey list, a move that increases monitoring of the country and could stifle foreign direct investment, raise international interest rates and cause a decline in GDP, according to an IMF analysis.
Silva said the crypto asset registration is the first step toward regulation. He hinted that the rules will likely follow those put in place by the United States.
Ignacio Gimenez, CEO of Lemon Cash, one of Argentina’s largest cryptocurrency exchanges, said the exchange has updated its system to allow users to voluntarily register assets with the government.
In May and June, Argentina stepped up its crackdown on cryptocurrency-related crimes. The prosecutor’s office carried out 64 simultaneous raids that led to 20 domestic and 10 international arrests linked to smuggling, money laundering and illegal gambling.
Argentine leaders will meet with the FATF in Paris in October as the task force continues to assess the level of money laundering and terrorist financing in Argentina.
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Reporting by Noelle Harff; Editing by Alexander Villegas and Rod Nickel
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