Regulation of Virtual Asset Service Providers in Argentina

The Comisión Nacional de Valores (CNV) has issued General Resolution No. 1058, establishing a comprehensive regulatory framework for Virtual Asset Service Providers (VASPs). This regulation, enacted under Law No. 27,739, aligns with international anti-money laundering (AML) and counter-terrorism financing (CTF) standards and introduces key provisions governing the registration, operation, and oversight of VASPs within Argentina’s financial ecosystem.

Definition and Scope of Application

The resolution defines VASPs as individuals or legal entities that, in the course of their business, conduct any of the following transactions on behalf of third parties:

1. Exchanging virtual assets for legal tender.

2. Exchanging one or more types of virtual assets.

3. Transferring virtual assets.

4. Custody and/or administration of virtual assets or instruments enabling their control.

5. Providing financial services related to the issuance and/or sale of virtual assets.

As the designated regulatory authority, the CNV will oversee the VASP Registry, exercising supervisory, inspection, enforcement, and sanctioning powers under Capital Markets Law No. 26,831.

Implementation Deadlines by Type of VASP

The resolution sets forth different implementation deadlines based on the type of entity:

• Existing individuals and legal entities must register in the VASP Registry by July 1, 2025, to continue operating legally.

• New entities commencing operations must register before launching their activities in Argentina.

• Individuals operating on a personal basis with volumes below 35,000 UVA per month are exempt from registration unless they exceed this threshold in any given month.

  • As of March 15, 2025, the Unit of Purchasing Value (UVA) is valued at AR$1,381.11, making the 35,000 UVA monthly threshold equivalent to approximately AR$48,338,850 (USD 39,300).

• Foreign entities operating in Argentina must register a subsidiary or local branch by October 1, 2025, to continue providing services to Argentine residents.

Registration Requirements for VASPs

All VASPs must register with the CNV before commencing operations in Argentina. This requirement also applies to foreign entities providing services in the country through local subsidiaries or permanent establishments.

To obtain registration, applicants must meet several criteria, including:

• Establishing a corporate structure as a corporation (S.A.) or limited liability company (S.R.L.).

• Meeting minimum capital requirements, which vary depending on the VASP category.

• Submitting corporate documentation, criminal background checks, and financial statements.

• Appointing compliance officers and customer relations representatives.

• Implementing robust cybersecurity and information security protocols.

Additionally, certain individuals and entities are disqualified from participation due to financial crimes, money laundering, or terrorism-related convictions.

Conduct Standards and Consumer Protection

To enhance transparency and market stability, the resolution imposes specific conduct and consumer protection obligations, including:

• Asset segregation: VASPs must strictly separate client assets from their own and are prohibited from using customer funds for proprietary operations.

• Risk disclosure: VASPs must clearly communicate the risks associated with virtual assets, including volatility and lack of government backing.

• Market integrity measures: The regulation prohibits market manipulation, misleading pricing practices, and false advertising.

• Responsible marketing and advertising: All promotional materials must be clear, accurate, and free from deceptive claims.

• Customer service and dispute resolution: VASPs must appoint a dedicated customer relations officer and implement effective complaint-handling mechanisms.

Ongoing Reporting and Regulatory Oversight

Registered VASPs are subject to periodic reporting obligations, requiring them to submit financial statements, system audits, and operational reports to the CNV.

The CNV retains the authority to impose sanctions for non-compliance, including blocking access to unregistered platforms operating in Argentina.

Conclusion

General Resolution No. 1058 marks a significant regulatory milestone for the virtual asset sector in Argentina, aligning local standards with global financial compliance frameworks and strengthening oversight in this rapidly evolving industry.

While the regulation provides greater legal certainty and investor protection, its successful implementation will depend on continuous monitoring and adaptability to technological and market developments.

For cryptocurrency investors and companies operating in this space, regulatory compliance is essential to avoid penalties and ensure business continuity. If you require expert legal counsel on navigating this regulatory landscape or safeguarding your virtual asset investments, contact Aníbal Falivene, a lawyer specializing in representing cryptocurrency investors.