Allende & Brea – Estudio Jurídico

This report cannot be considered as legal or any other kind of advice by Allende & Brea. For any questions, do not hesitate to contact us.

New Regulations on Virtual Asset Service Providers

Activos virtuales regulados por Camara Nacional de Valores - Allende & Brea

In relation to the Financial Action Task Force Recommendations, the Congress enacted Law No. 27,739 (the “Law”), introducing modifications to existing legislation related to the prevention and repression of Money Laundering, Terrorism Financing, and the Financing of the Proliferation of Weapons of Mass Destruction.

Through the Law, the creation of a registry for Virtual Asset Service Providers (“VASPs”) is promoted.

  • The definition of “Virtual Assets” is created as the “digital representation of value that can be traded and/or transferred digitally and used for payments or investments,” and within “Goods or other assets,” tangible or intangible assets are included.
  • Additionally, the definition of VASP is also included as a natural or legal person who, as a main economic activity, carries out one or more of the following operations for or on behalf of another natural or legal person:
  1. Exchange between Virtual Assets and fiat currencies;
  2. Exchange between one or more kind of Virtual Assets;
  3. Transfer of Virtual Assets;
  4. Custody and/or administration of Virtual Assets or instruments enabling control over them; and
  5. Participation in and provision of financial services related to the offer or sale of a Virtual Asset by an issuer.

Furthermore, these VASPs have been included as obligated entities to report to the UIF and comply with the reporting regimes and obligations detailed in the Law.

Finally, the Virtual Asset Service Providers Registry (the “Registry”) is created, in which all natural or legal persons -established in Argentina or abroad- carrying out the activities detailed above must be registered. Through the Registry, the National Securities Commission (“CNV” for Spanish acronym) will analyze that the VASPs comply with:

  1. Protection and defense of users, within the framework of consumer protection laws.
  2. Information security and protection of personal data.
  3. Security and effectiveness in the development of operations.
  4. Prudential standards promoting stability, solvency, and transparency.
  5. Corporate governance practices and application of a risk-based approach.
  6. Prevention of money laundering, terrorism financing, and the financing of the proliferation of weapons of mass destruction, complementarily with regulations issued by the UIF.
  7. Protection of public savings.

The VASPs must report their activities as from the enforce of the Law (30 days from its publication in the Official Gazette on March 15th, 2024).

This report cannot be considered as legal or any other kind of advice by Allende & Brea. For any questions, do not hesitate to contact us.

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