BUENOS AIRES, ARGENTINA – SEPTEMBER 25: Presidential candidate Javier Milei of La Libertad Avanza … (+)
Argentina is a leader in cryptocurrency adoption, ranking first in Latin America for crypto value received, with more than $91 billion, according to Chainalysis. The country ranks 15th in the Chainalysis Global Adoption Index. As part of this growth, Argentina’s Financial Reporting Unit has strengthened its regulatory framework, particularly targeting virtual asset service providers operating in its territory. Global companies like cryptocurrency exchange Binance are among those required to comply with these new standards.
To address the rapid expansion of the sector and the financial risks it poses, the Argentine Financial Reporting Unit introduced Resolution No. 49/2024 in March 2024. This resolution imposes strict compliance requirements on suppliers of virtual asset services to prevent money laundering, terrorist financing and mass destruction. financing of weapons. Although the resolution took effect in March, a phased compliance schedule extending through August 2025 gives VASPs time to adapt.
Global and local crypto exchanges will be affected, requiring them to align with improved standards of transparency and risk management. This regulatory step also aligns Argentina with Financial Action Task Force standards and global best practices, aimed at mitigating risks associated with cryptocurrency activities.
Regularization of assets of dollars, Bitcoin and cryptocurrencies in Argentina
Argentina is currently undergoing an asset regularization process known as blanqueo. As Infobae reported at the end of September, the first phase ended on October 31. This program allows individuals and businesses to declare previously undeclared assets, including bitcoin and other digital assets, by paying a fee.
The ongoing “blanqueo” program and reporting requirements imposed on VASPs aim to create a more secure process, minimizing the risk of money laundering. The deadline to join the asset regularization program is April 30, 2025, with the last deadline to file a sworn declaration on May 30, 2025.
Requirements for Virtual Asset Service Providers in Argentina
According to a document from the National Securities Commission of Argentina, “virtual asset service providers are required to report monthly the opening and closing of customer accounts, as well as all transactions involving virtual assets equal to or greater than six times the minimum wage.
Argentina’s Ministry of Human Capital set the minimum wage at 262,432.93 pesos, meaning virtual asset service providers must report any transaction above $1,350. In accordance with this requirement, VASPs must report all new and closed customer accounts, including detailed personal information of account holders, to ensure transparency for those engaged in crypto transactions.
These requirements apply to fiat-to-crypto purchases and sales, crypto-to-crypto exchanges, and inbound and outbound crypto transfers. Transfers to or from VASP accounts require comprehensive reporting, with information such as recipient or sender details, public keys, cryptocurrency and Argentine peso transaction amounts, asset type , wallet addresses and additional optional data for transfers, including counterparty exchange and sender or recipient ID.
The potential impact of the requirements for Argentina
While these regulations aim to boost Argentina’s economy and improve transparency, they could also result in increased compliance costs and operational adjustments for VASPs, potentially affecting their effectiveness in onboarding new users.
Additionally, users who have turned to bitcoin, stablecoins and other cryptocurrencies to escape peso inflation and avoid reliance on traditional banks may view these requirements as restrictive.
These new regulations could push users toward peer-to-peer crypto transactions, bypassing VASPs altogether. By bypassing these providers, users may feel they retain greater control, which could challenge the UIF’s ability to effectively monitor transactions.
According to Tumo, a local tax services provider, users are already feeling the impact of the new regulations, raising concerns about the amount of information local tax authorities will have access to. “Many of our conversations with potential clients holding cryptocurrencies focus on the potential consequences of hiding cryptocurrencies from tax authorities,” Lucas Martinez, co-founder and chief business officer of Tumo, told me in an interview via X direct messages.
“The recent “blanqueo” program has many people wondering if now is the right time to declare their crypto holdings and avoid sanctions. It is interesting to note that the Federal Administration of Public Revenue – today Customs Collection and Control Agency – and the National Securities Commission introduced these With the new VASP regulations in March, which attracted the People’s attention is that Binance has also registered as a VASP – an action that some consider opportunistic for the government.
Despite increased concerns over platform choice, Tumo notes that many believe the regulation could benefit the entire industry.
As the “blanqueo” program winds down and reporting requirements for VASPs strengthen, Argentina’s crypto landscape could change. With inflation control measures and new regulations, crypto adoption may evolve and users may become more cautious or discouraged from using digital assets as freely as before.
