Crypto license in Argentina

Introduction and Regulation

Argentina has rapidly positioned itself as a leading destination for cryptocurrency businesses in Latin America, driven by its growing adoption of digital assets and supportive regulatory environment. High inflation and currency depreciation have spurred widespread use of cryptocurrencies, with the country ranking second in the region for crypto activity (behind Brazil) and thirteenth globally as of 2024. This increasing popularity has fueled a booming crypto ecosystem, home to innovative startups like Ripio, SatoshiTango, Decrypto, Lemon, and Koibanx.

Argentina offers an attractive jurisdiction for cryptocurrency registration and operations, especially for startups. Its lenient regulatory requirements, straightforward registration procedures, and cost-effective setup make a crypto exchange license in Argentina an appealing choice for businesses seeking to enter the crypto market. Unlike many other countries, most cryptocurrencies in Argentina are not classified as ‘securities,’ minimizing compliance risks and facilitating their free circulation.

The Argentine regulator’s predictable and efficient approach allows for quicker crypto registration compared to competing jurisdictions. Additionally, Argentina’s vibrant blockchain community and modern infrastructure provide opportunities for collaboration and growth. Major players such as Binance and Bit2Me have already leveraged the country’s favorable environment, further solidifying its reputation as a crypto-friendly jurisdiction.

While the legal framework is still evolving, recent initiatives like the establishment of the National Securities Commission (CNV) to regulate crypto companies and the development of FATF-compliant legislation signal Argentina’s commitment to building a unified and transparent regulatory structure. For startups and established firms alike, Argentinas crypto license presents a unique opportunity to thrive in a rapidly growing market.

License Requirements

To obtain a Virtual Asset Service Provider (VASP) license in Argentina, companies must meet the following requirements:

Company Structure:

• The company must be a legal entity registered in Argentina.
• Any individual or legal entity not listed on sanctions lists and with no criminal record can be a founder. Politically Exposed Persons (PEPs) are not eligible.
• The company structure must include at least one director, who may also be a shareholder. A local director is not required.
• A designated Compliance Officer and Alternate Compliance Officer, registered with the Financial Intelligence Unit (UIF), must oversee AML compliance.

Charter Capital:

• A minimum share capital of $6,000 USD must be contributed during the company’s formation.

Office Requirements:

• A virtual office in Argentina is sufficient to meet the regulatory requirements.

Reporting Obligations:

• Maintain standard bookkeeping, including monthly payroll reports, annual financial statements, and tax returns.
• Submit AML reports for any suspicious transactions as part of compliance requirements.

Security Deposit/Liability Insurance:

• No security deposit or liability insurance is required.

Internal Policies:

• The preparation of AML documentation and policies is mandatory to ensure compliance with anti-money laundering regulations.

It’s important to note that while Argentina’s legislation is still evolving, these requirements provide a straightforward pathway for businesses to establish themselves in the country’s growing cryptocurrency ecosystem. Companies are advised to remain proactive in monitoring regulatory changes to maintain compliance.

License Functionality

Argentina’s CNV oversees the VASP Registry, introduced under the “Prevention of Money Laundering and Terrorist Financing” law in 2024. The registry aims to:

• Regulate VASP companies operating in Argentina.
• Ensure compliance with AML/CFT laws.
• Prevent the misuse of cryptoassets for illegal purposes.
• Protect investors and users of crypto-related services.
• Promote transparency in virtual asset transactions.

All companies operating in the crypto sector must register if their transaction volume exceeds 35,000 UVA (approximately $29,246). Failure to register disqualifies a company from operating, although exemptions exist for entities with monthly volumes below this threshold.

Once registered, VASPs can engage in the following activities:

• Exchange of virtual assets for fiat currency.
• Exchange of one virtual asset for another.
• Transfer of virtual assets.
• Custody and management of virtual assets.
• Financial services related to virtual asset offerings and sales.

While there are no specific license classifications, CNV registration ensures companies operate within a legal framework.

Benefits

1. Registration with CNV provides a clear legal framework, protecting businesses from regulatory uncertainty and ensuring compliance with AML/CFT laws.
2. Argentina’s thriving crypto ecosystem offers a strong market for businesses, with increasing consumer adoption of digital currencies.
3. Under President Milei’s administration, pro-crypto policies aim to integrate digital assets into the financial system.
4. The VASP registry fosters transparency and accountability, building trust with customers and investors.
5. Argentina’s growing crypto market positions businesses for future growth, especially as new regulations create a more stable operating environment.

Conclusion

While Argentina’s cryptocurrency regulatory framework is still developing, the country presents a promising opportunity for crypto businesses. With clear registration requirements, supportive government policies, and a growing user base, Argentina is paving the way for a robust and transparent crypto ecosystem. However, companies must remain vigilant about evolving regulations and seek expert legal advice to navigate this dynamic landscape successfully.

At SBSB, we specialize in providing comprehensive legal and regulatory support to crypto businesses looking to establish themselves in Argentina and other jurisdictions. Our team of experienced professionals is well-versed in the complexities of Argentina’s cryptocurrency regulations and can guide you through every step of the process—from registration and compliance to operational setup. Whether it’s ensuring your company meets the registration requirements, drafting essential policies, or preparing for upcoming regulatory changes, we are here to help your business thrive in this rapidly evolving market.

Feel free to contact us for tailored legal advice and solutions that ensure compliance and foster your success in Argentina’s burgeoning crypto industry.