Regulation
Argentina to regulate booming cryptocurrency market
Alex Dobnya
Argentina is rushing to regulate its booming cryptocurrency sector
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According to a recent relationship Reuters, Argentina is on track to tame the fast-growing cryptocurrency market with a new law.
The initiative aims to counter illegal activities enabled by cryptocurrencies.
The new law provides tax exemptions for those who declare digital assets worth up to $100,000.
Due to concerns about money laundering activities, Argentina has begun to come under increasing pressure from the Financial Action Task Force (FATF), a “policy-making body” that aims to combat financial crimes.
In order not to appear on the much-feared FATF gray list, Argentina has rushed to regulate digital assets. Registering cryptocurrencies should be the first step towards regulation.
Argentina has long been known as a major cryptocurrency hub due to its economic difficulties. In fact, it recorded over $85 billion in cryptocurrency transactions in 2023.
Last November, Argentina elected pro-Bitcoin libertarian Javier Milei as its new president.
Recently, some publications reported that Argentina was considering making Bitcoin legal tender under Milei’s leadership. However, these reports were incorrect and the president’s comments were misinterpreted.
For now, it seems that Argentina is focusing on providing regulatory clarity to the cryptocurrency industry, rather than taking radical measures such as adopting the Bitcoin standard.
The idea of a major country like Argentina adopting Bitcoin as its official currency seems too far-fetched, despite some pro-crypto statements made by its libertarian leader. The country’s central bank is currently facing issues such as devaluation and inflation.
About the author
Alex Dobnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything from price analysis to Blockchain disruption. Alex has written over 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets and can be reached at alex.dovbnya@u.today.