In accordance with Law No. 27,739 (the “Law”), which brought amendments to existing legislation concerning the prevention and suppression of money laundering in transactions involving virtual assets, the National Securities Commission (“CNV”) has laid down, through Resolution 994/24 (“Resolution”), the prerequisites and conditions for the Registration of Virtual Asset Service Providers (“VASPs”).
Under the Resolution, VASPs ‑comprising both individuals and legal entities, whether or not based in Argentina‑ must register with the CNV when engaging in any of the following activities or transactions involving Virtual Assets within Argentina: (i) exchange between virtual assets and legal tender, (ii) exchange between one or more types of virtual assets, (iii) transfer of virtual assets, (iv) custody and/or administration of virtual assets or instruments enabling control over them, and (v) participation in and provision of financial services related to the offering or sale of virtual assets. The Resolution specifies that these activities will be deemed to be conducted within Argentina under certain conditions, namely:
- Use of the “.ar” domain on websites.
- Existence of commercial agreements to receive funds locally or assets from Argentine residents to fund operations (ramp services).
- The service is clearly targeted to Argentine residents.
- Marketing with a clear aim at Argentina.
- Turnover exceeding 20% of the total turnover.
Additionally, the Resolution lays down registration requirements for VASPs, mandating the provision of information related to their identity/corporate name, address, economic activity, website used, tax identification number, main activity carried out, and identification of activities (i) to (v). Natural/legal persons established in non-cooperative or high-risk jurisdictions according to the FATF may not register in the Registry.
This regulation is particularly important, because the Argentine regulator has set forth objective conditions to compel non-residents to register with registries in Argentina.
Finally, the Resolution clarifies that registration in the VASP Registry does not imply the issuance of a license by the CNV for the activities outlined in points (i) to (v). VASPs currently engaged in any activities specified in the Law as of the Resolution’s effective date must initiate the registration process within 45 days of the Resolution coming into effect.
