Argentina’s National Securities Commission (CNV) has introduced a new draft for crypto regulations, aiming to balance innovation with legal compliance. According to CNV President Roberto Silva, the resolution seeks to “regulate according to the principles of the Law, but without stopping innovation in the sector.” The draft, which calls for public consultation, highlights significant changes in the classification of crypto companies and sets a minimum capital requirement for those offering services such as virtual asset transfers, custody, and management.

Capital Requirements for Crypto Firms

One of the more contentious aspects of the draft is the new capital requirement for Virtual Asset Service Providers (VASPs). Companies providing virtual asset services will need a minimum of $173,000 in registered capital to operate legally in the country. Individuals, however, will be able to engage in fiat-to-crypto and crypto-to-crypto exchanges without needing to form a company.

Industry Response: A Call for Balanced Regulation

Members of Argentina’s crypto industry have reacted cautiously but positively to the draft. While they recognize the need for regulation, they emphasize the importance of maintaining a framework that fosters growth. Carlos Peralta, Bitso Argentina’s lead of Public Affairs, welcomed the public consultation approach. “At Bitso, we deeply value that the review of requirements for the VASP registry is open to public input, which will contribute to financial inclusion and a faster, more efficient financial infrastructure.”

Gradual and Intelligent Regulation

Juan Pablo Fridenberg, director of Lemon, one of Argentina’s leading exchanges, also expressed support but with a note of caution. He highlighted the need for gradual and smart regulation to avoid stifling the industry’s growth. “Authorities know that regulation must be intelligent and gradual. A framework that distorts, suffocates, or makes the activity of VASPs too expensive will push users toward deregulated or cross-border alternatives,” Fridenberg stated.

Future of Crypto in Argentina

With this draft, Argentina takes a significant step toward formalizing its crypto industry. However, the success of these regulations will largely depend on whether the final version strikes the right balance between protecting investors and allowing crypto companies the flexibility to innovate and grow. Public consultation and ongoing dialogue with the industry will be key to shaping a regulatory framework that benefits all stakeholders.