Regulatory Framework for Virtual Assets in Argentina

In Argentina, the virtual asset ecosystem is partially regulated through various regulations issued in recent years. According to Law No. 27,739, a virtual asset is a digital representation of value that can be traded or transferred digitally and used for payments or investments. The law establishes that legal tender currencies, whether national or issued by other States, are not considered virtual assets.

The regulation also introduces the figure of Virtual Asset Service Providers (PSAV), defined as any individual or legal entity that, as a business activity, carries out activities such as:

• exchange between virtual assets and fiat currency,

• exchange between virtual assets,

• transfer of virtual assets,

• custody or administration of virtual assets,

• provision of financial services related to the offering or sale of virtual assets.

PSAVs are obligated subjects under anti–money laundering and counter–terrorism financing regulations. The National Securities Commission (CNV) is the authority responsible for the registration and supervision of these providers, with regulatory, inspection, and enforcement powers.

The opinion also notes that there is no global and unified regulation of the “virtual asset” itself in Argentina, distinguishing this from regulations that do apply to intermediaries.

Likewise, commonly used market concepts are described:

• Cryptocurrencies with their own blockchain (such as bitcoin or ethereum), used as means of payment or exchange.
  Stablecoins, characterized as private cryptoassets designed to maintain a stable value relative to fiat assets or other goods.

• Utility tokens, which grant access to products or services.

• Asset tokens, which represent assets or credit rights.

• Commodity tokens, which represent physical commodities and grant rights to ownership or physical redemption.

The regulatory framework applicable to virtual assets continues to evolve and includes initiatives aimed at organizing the activities of those who provide services using these instruments.