2023-11-13 13:07:24
© Reuters. Project for regulating cryptocurrencies in Argentina is presented during the Labitconf event
Blockmarket – Argentina, a non-governmental organization dedicated to promoting cryptocurrencies in Argentina, has presented a bill aimed at regulating the sector in the country. The proposal was announced by the organization’s president, Ricardo Mihura, during the LABITCONF 2023 event, held between November 10th and 11th in Buenos Aires, the Argentine capital.
Over the years, the organization has opposed the idea of regulating the cryptocurrency industry, but now, it justifies the project as a way to hold malicious actors accountable and protect the blockchain. “We have always rejected attempts to regulate the crypto economy, but this time our goal is to respond positively, with just two purposes: preserving decentralization and protecting economies and public trust,” said Mihura.
The basis of the proposal is to categorize cryptocurrency platforms and service providers into three groups based on their treatment of property rights. Are they: Decentralized; Locally centralized or willing to dialogue with authorities; and Global centralized.
While centralized platforms could operate freely, the proposed legislation ensures customers have the right to broad legal protection, allowing them to claim damages in the event of the company’s failure. Decentralized platforms would not be subject to intervention by Argentine courts.
Presidential race in Argentina and Bitcoin
Ricardo Mihura recalls that “total bans” on cryptocurrencies, observed in some countries around the world, are ineffective due to the global nature of blockchain technology. At the same time, the inflation crisis in Argentina, which recorded the fourth highest annual inflation rate in the world in the last 12 months (121.7%), has caused rapid growth in the cryptocurrency market in the country. According to research by GWI, Argentina has one of the highest rates of ownership of digital assets, with 23.5%, behind only Turkey, which has 27.1%.
The bill also aims to hold accountable all parties involved in fraudulent activities, from direct criminals to those who benefit from fraudulent schemes. The “Blockchain Argentina” title for the bill coincides with an imminent presidential race in the country, involving current economy minister Sergio Massa and libertarian economist Javier Milei, who advocates the abolition of Argentina’s central bank.
Given these factors, the regulatory project presents itself as an attempt to anticipate possible issues arising from a mass adoption of cryptocurrencies in the country, in addition to effectively punishing crimes related to this market. The topic of cryptocurrencies has been gaining prominence in Argentina during the country’s elections, which will have a second round on November 19th. Candidate Javier Milei, a pro-Bitcoin libertarian and leader in the polls, has been making several statements that he could eliminate the central bank, encouraging the use of private currencies, such as Bitcoin.
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