ARGENTINE FOREIGN EXCHANGE REGIME

General framework applicable to digital assets and potential operational impacts

1. Purpose and Scope

This section provides a general overview of the Argentine foreign exchange regime and certain operational rules that may affect individuals and companies interacting with digital assets (including cryptoassets) and/or making payments or transfers involving foreign counterparties. The objective is to clarify compliance risks and typical restrictions on access to the Single and Free Foreign Exchange Market (MLC).

2. Legal and Offering Disclaimers

(Applicable to all content on this page)

This material is published exclusively for informational and educational purposes. It does not constitute (i) a public or private offering, (ii) an invitation to make an offer, (iii) an investment recommendation, nor (iv) legal, financial, accounting, or tax advice.

No offering of negotiable securities, virtual assets, or financial instruments is made through this medium, nor is any person requested to make investment decisions based on this content.

The Argentine foreign exchange regime is dynamic and may change through Central Bank (BCRA) communications and complementary regulations. Concrete applicability depends on the specific case (subject profile, transaction type, source/destination of funds, purpose, residency, documentation, and compliance with formal requirements).

3. Authority and Basic Concepts

3.1. Competent authority

The Central Bank of the Argentine Republic (BCRA) is the authority that regulates access to the foreign exchange market, the conditions and requirements for processing transactions, and compliance with affidavits and related controls.

3.2. What constitutes a “foreign exchange transaction” (general criterion)

From a technical standpoint, a “foreign exchange transaction” generally refers to the exchange or swap between one currency and another, involving Argentine pesos (ARS), within the regulatory perimeter established by the BCRA. If an operation qualifies as a foreign exchange transaction, its execution—where applicable—must be carried out through authorized entities and in accordance with the rules of the MLC.

3.3. Risk of non-compliance

Violations of the foreign exchange regime may trigger the Foreign Exchange Criminal Regime, with consequences that may include fines and, depending on the case, other sanctions applicable to directors, managers, and agents involved in the transaction.

4. Digital Assets and “Liquid External Assets”

Within the foreign exchange framework, cryptoassets may be classified as liquid external assets (together with, for example, foreign currency holdings, gold, and immediately liquid external investments). This classification is relevant because the regime includes restrictions on access to the MLC for parties holding certain levels of liquid external assets or specific combinations with other instruments.

5. Typical MLC Access Restrictions Linked to Cryptoassets

Below are common restrictions that may affect parties operating with cryptoassets and subsequently seeking access to the MLC for outflows (e.g., payments abroad):

5.1. “90-day” temporal restriction (crypto activity vs. MLC access)

In general terms, the purchase of cryptoassets with local currency (ARS) or local assets may trigger a temporary restriction on access to the MLC for certain outflows for 90 days. Conversely, parties that have accessed the MLC during the previous 90 days may be prevented from purchasing cryptoassets settled in local currency (depending on classification, affidavits, and the type of transaction).

Operational implication:
Investors or companies engaging in crypto transactions may see their ability to access the MLC affected for a period of time, requiring careful treasury planning.

5.2. Restriction based on liquid external assets (LEA) + CEDEARs (threshold)

The regime includes rules under which certain parties may be denied access to the MLC for outflows if they hold liquid external assets (LEA) in combination with holdings of CEDEARs representing foreign shares above certain thresholds (e.g., a reference threshold of USD 100,000 in certain scenarios)

Operational implication:
Portfolio composition (crypto + certain instruments) may condition access to the MLC.

6. What This Means for Users and Investors

(In simple terms)

6.1. Potential risks and frictions

• Delays or temporary inability to access the MLC to pay for goods or services abroad.

• Requirement to comply with affidavits and prior controls linked to crypto activity.

• Impact on planning international payments, imports, services, or corporate remittances.
  
  
  

6.2. Recommended best practices (operational)

• Plan the timing of crypto transactions in relation to anticipated needs for MLC access.

• Properly document the source and purpose of funds and maintain traceability (internal compliance).

• Avoid treasury decisions that create incompatibilities with 90-day windows when MLC outflows are anticipated.
  
  
  

7. Design and Compliance Principles for Digital-Asset-Linked Structures

To minimize interpretation risk and operational friction, the following robustness principles apply:

• Separation of roles and functions: clearly distinguish between issuance/representation, registration, custody, payments, and conversions.
  
  
  

• Proper channeling of foreign exchange transactions: any operation that may qualify as a foreign exchange transaction must, where applicable, be processed through authorized channels under BCRA rules.
  
  
  

• Traceability and auditability: maintain internal records and sufficient documentation to respond to requests from banks, regulated entities, and counterparties.
  
  
  

• Clear risk communication: avoid promises of immediate availability of international payment channels without accounting for regulatory restrictions.
  
  
  

8. Operational Checklist

(Quick reference)

9. Regulatory References

• BCRA — Consolidated “Foreign Exchange” Regulations (MLC access conditions, affidavits, and related restrictions).

• Foreign Exchange Criminal Regime — Law No. 19,359 (consequences for violations).

• Complementary BCRA regulations and communications, as applicable.