Key information for suppliers and users

Argentina is a leader in cryptocurrency adoption, ranking first in Latin America in terms of cryptocurrency value received with over US$91 billion. according to to chain analysis. The country ranks 15th in Chaina analysis’ global adoption index. Among this heightArgentina’s Financial Information Unit has tightened its regulatory framework, particularly for virtual asset service providers operating within its territory. Global companies such as cryptocurrency exchange Binance are among those required to comply with these new standards.

To address the rapid expansion of the sector and its associated financial risks, the Argentine Financial Information Unit presented Resolution No. 49/2024, adopted in March 2024. This resolution establishes strict compliance requirements for virtual asset service providers to prevent money laundering, terrorist financing and weapons of mass destruction financing. Although the resolution took effect in March, the phased compliance schedule extended through August 2025 gives VASPs time to adapt.

This will impact both global and local cryptocurrency exchanges, requiring them to meet increased standards of transparency and risk management. This regulatory move also brings Argentina into compliance with Financial Action Task Force standards and global best practices in an effort to reduce the risks associated with cryptocurrency activities.

Regularization of assets of dollars, bitcoins and cryptocurrencies in Argentina

Argentina is currently undergoing an asset regularization process known as “blanqueo”. How reported by Infobae At the end of September, the first stage ended on October 31. This program allows individuals and companies to declare previously undeclared assets, including Bitcoin and other digital assets, by paying a tax.

The current blankeo program and reporting requirements for VASPs are intended to create a more secure process and minimize the risk of money laundering. The final date for joining the asset regularization program is April 30, 2025 and the last date for filing the affidavit is May 30, 2025.

Requirements for virtual asset service providers in Argentina

According to document According to the decision of the National Securities Commission of Argentina, “virtual asset service providers are required to report monthly openings and closures of customer accounts, as well as all transactions involving virtual assets equal to or exceeding six times the minimum wage.”

Argentina’s Ministry of Human Capital has set a minimum wage of 262,432.93 pesos, which means virtual asset service providers must report any transaction exceeding $1,350. This requirement requires VASPs to report all new and closed customer accounts, including detailed personal information of account holders, to ensure transparency for those involved in cryptocurrency transactions.

These requirements apply to fiat purchases and sales, cryptocurrency-to-crypto exchanges, and incoming and outgoing cryptocurrency transfers. Transfers to or from VASP accounts require comprehensive reporting with information such as recipient or sender details, public keys, transaction amounts in both cryptocurrency and Argentine pesos, asset type, wallet addresses and additional additional data for transfers, including exchange counterparties and sender or recipient ID.

Potential impact of requirements for Argentina

While these rules are aimed at stimulating Argentina’s economy and increasing transparency, they may also result in increased compliance costs and operational adjustments for VASPs, potentially impacting their effectiveness in attracting new users.

Additionally, users who have turned to Bitcoin, stablecoins and other cryptocurrencies to escape peso inflation and avoid dependence on traditional banks may view these requirements as restrictive.

These new rules could push users toward peer-to-peer cryptocurrency transactions, bypassing VASPs altogether. By bypassing these providers, users may feel like they retain more control, which could compromise the UIF’s ability to effectively track transactions.

According to Tumolocal tax service provider, users are already feeling the impact of the new rules, raising concerns about how much information local tax authorities will have access to. “Many of our conversations with potential clients who own cryptocurrency focus on the potential consequences of hiding cryptocurrency from tax authorities,” Lucas Martinez, co-founder and chief commercial officer of Tumo, told me in an interview via X Direct messages.

“The recent blankeo program has many wondering if now is the right time to declare their crypto assets and avoid fines. Interestingly, while the Federal Administration of Revenue (now the Customs Administration Agency) and the National Securities Commission introduced these new VASP rules in March, what caught people’s attention was that Binance had also registered as a VASP – an action that some consider opportunistic for the government “

Despite heightened concerns about platform choice, Tumo notes that many believe regulation could benefit the industry as a whole.

As the blanqueo program ends and VASP reporting requirements become more stringent, Argentina’s crypto landscape may change. Thanks to inflation controls and new regulations, cryptocurrency adoption may change and users may become more cautious or stop using digital assets as freely as before.