Law No. 27,739, approved on March 14 in the Senate, reforms Law No. 25,246 of Prevention of Money Launderings, the Financing of Terrorism and the Proliferation of Weapons of Mass Destructionsanctioned in 2000.
Crypto regulation: what will be the functions of the CNV
The reform establishes new powers for the CNV, among them the creation of the Registry of Virtual Asset Service Providers (PSAV)through which it will centralize adequate, precise and updated information on all human and legal persons that are providers of virtual records.
In addition, the organization will exercise the functions of supervision, regulation, inspection, oversight and sanction of said suppliers. The sanction of the Law and its promulgation occurs within the framework of the Fourth Round of Mutual Evaluation of Argentina of FATF/GAFILAT.
In this sense, Roberto E. Silva, president of the CNV, highlighted “we have been working since the possibility of the Law being sanctioned became a certain probability, now that it is a reality we will advance in the creation of the registry of suppliers of virtual assets in compliance.” with FATF recommendations”
For its part, the director Sonia F. Salvatierra, a member of the CNV board of directors who recently accompanied the start of the visit of the Financial Action Task Force (FATF), said that “for the CNV it is very important to accompany and comply with the FATF/GAFILAT evaluation. Therefore, our team is dedicated to meeting goals and recommendations with the objective of achieving the strengthening and “promote the development of the Argentine capital market.”
Finally, the CNV board of directors, also made up of Patricia Boedo, stated that “a coordinated task will be carried out with the FIU, organizations of the Public Administration and decentralized entities and/or autarkic so that the result of the implementation of the new regulations is effective and transparent, generates new opportunities in the fight against organized crime, promotes the effectiveness of the preventive and repressive system, promotes compliance with AML/CFT obligations by part of the private sector and promote adaptation to new technologies.
What was approved in the Senate and what it means for crypto companies
Three days ago, the reform of law 25,246 on the prevention of money laundering, which had half the approval of Deputies, was approved in the Senate, which includes changes in the Penal Code, in the Financial Information Unit (UIF) and also the creation of a Registry of Virtual Asset Service Providers (PSAV). In this way, all companies that operate with cryptocurrencies in Argentina must register in that registry and submit to the “supervision, regulation, inspection, supervision and sanction” of the Government through the National Securities Commission (CNV).
The rush to approve the project is due to the fact that a mission from the Financial Action Group (FATF), the global organization dedicated to the prevention of money laundering, is in Buenos Aires until March 26. The Government had to comply with a FATF specific requirement regarding registering crypto companies. If not, it could enter the FATF’s undesirable “gray list,” made up of countries vulnerable to this type of crime.
Before March 26, the sanctioned rule must be in effect. Therefore, President Javier Milei is expected to promulgate it as soon as possible, after vetoing the article that provides for its entry into force 30 days after its publication. To comply with FATF, it must come into effect sooner. Once enacted, the CNV will dictate its regulations, in its capacity as the enforcement authority of that registry. And that’s how it happened.
“We celebrate the unanimous approval of the reform of the Anti-Money Laundering law that will allow the country to comply with international standards, especially at this time when it is being evaluated by the FATF. We hope that the authorities take advantage of this unique opportunity to not only create a good registration of virtual service providers within the framework of the CNV, but also a comprehensive and world-class crypto regulation, that protects users and promotes innovation our industry and financial inclusion”, Bitso said in a recent statement upon hearing the news.
Source: Ambito
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