General Resolution CNV No. 1058: Regulation of Virtual Asset Service Providers (VASPs)
Capital Markets Department Report | General Resolution CNV No. 1058: Regulation of Virtual Asset Service Providers (VASPs).
I- Introduction
On Friday, March 14, 2025, the Argentine Securities and Exchange Commission (“CNV”) published General Resolution No. 1058/2025 (the “Resolution”), establishing a new regulatory framework for Virtual Asset Service Providers (“VASPs”). This Resolution approves, with modifications, the draft previously published through General Resolution No. 1025/2024 (the “Draft Regulation”) (see our previous newsletter). It also complements the regulatory guidelines laid out in General Resolution No. 994/2024 (see our previous newsletter), which marked the beginning of virtual asset regulation in Argentina.
The Resolution expands the requirements to register with the VASP registry (“VASP Registry”) set forth by General Resolution No. 994, and provides more detailed regulation regarding VASP activities. Below is a summary of the key aspects of the Resolution, highlighting the main changes compared to the Draft Regulation.
II- VASP Registration
The Resolution provides that individuals residing in Argentina and legal entities incorporated in the country must register with the CNV if they engage in one or more of the activities listed in Section 4 bis of Law No. 25,246 (as amended by Law No. 27,739). The activities triggering registration obligations are:
-Exchange between virtual assets and fiat currencies.
-Exchange between one or more types of virtual assets.
-Transfer of virtual assets.
-Custody and/or administration of virtual assets or instruments that enable control over them.
-Participation in and provision of financial services related to the offering and/or sale of a virtual asset.
The Resolution clarifies that foreign legal entities are required to register as VASPs only if they carry out activities in Argentina directly. Notably, they must either incorporate a local entity pursuant to Section 123 of the General Companies Law No. 19,550 (“LGS”) or register under Section 118 of the LGS.
While the exemption from registration remains for those conducting activities below 35,000 UVAs, the Resolution limits this exception exclusively to individuals (unlike the Draft Regulation, which applied it more broadly).
III- Registration Requirements
VASPs must register with the CNV before commencing operations. To complete the process, they must provide general information, identify their legal representatives, and submit proof of tax compliance, financial standing, and compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Notably, the Resolution requires that legal entities incorporated in Argentina adopt the legal form of either a corporation (“sociedad anónima”) or a limited liability company (“sociedad de responsabilidad limitada”). Simplified joint stock companies (“SAS”) already registered must convert to one of these corporate types and submit proof of such change to the relevant Public Registry.
IV- VASP Activities
The categories of VASP activities remain consistent with those in the Draft Regulation, with certain clarifications:
-Category 1: Exchange between virtual assets (VAs) and fiat currencies.
-Category 2: Exchange of one VA for another.
-Category 3: Transfer of VAs.
-Category 4: Custody and/or administration of VAs or instruments that enable control over them. (Non-custodial services are explicitly excluded.)
-Category 5: Participation in and provision of financial services related to the offering and/or sale of a VA.
The Resolution clarifies that Category 5 includes services provided through apps or platforms to issuers of initial coin offerings (ICOs) or as a fundraising mechanism for investment projects. It also specifies that the mere issuance of a virtual asset is not considered a VASP activity.
However, whether an ICO constitutes a public offering of securities must be assessed on a case-by-case basis. If so, prior authorization from the CNV is required.
Individuals may only register to carry out activities under Categories 1 and 2, while legal entities may register under any of the five categories.
V- Conditions for Foreign VASPs to Register in Argentina
The circumstances requiring a foreign VASP to register in Argentina remain unchanged from Resolution No. 994/2024. However, the Resolution expressly states that “reverse solicitation” is not considered advertising targeted at Argentine residents.
VI- Clarification of Non-Covered Activities
The Resolution clarifies that the following are not covered under the VASP regime:
-Personal use exchange of virtual assets.
-Receipt of virtual assets as consideration for goods or services.
-Decentralized protocols without an identifiable provider.
-Self-custody wallets.
VII- Minimum Net Worth Requirements
The Resolution sets new minimum net worth requirements in USD, depending on the activity:
-Categories 1, 2, and 4 (exchange and custody): USD 150,000.
-Category 3 (transfer): USD 75,000.
-Category 5 (ICO-related services): USD 35,000.
If the volume of transactions or assets under custody is below USD 2,500,000 in the past 12 months, the minimum net worth requirement is reduced by 50%.
VIII- Systems Audit
Unlike the Draft Regulation, the Resolution removes the requirement for an external annual systems audit. The audit must be conducted by a qualified professional and recorded in the company’s board minutes. The audit must verify the integrity of recorded information and the security of systems.
IX- Designated Officers
-Regulatory Compliance and Internal Control Officer: Oversees internal controls and ensures regulatory compliance.
-Public Relations Officer: Handles customer inquiries and complaints.
X- Segregation of Funds
-Segregation of Client and Proprietary Funds: VASPs must clearly segregate these in their internal systems.
-Bank Accounts and Wallets: While the Draft allowed use of third-party payment service providers (PSPs) registered with the Central Bank, the Resolution adds that client funds may be held in bank accounts in the VASP’s name, in financial institutions in Argentina or abroad, provided they meet international security standards equivalent to Basel III.
XI- Confidentiality
VASPs must protect against disclosure of information that could compromise virtual asset security or identify individuals/entities. They must avoid directly identifying parties involved in infrastructure and IT processes.
XII- Expected Conduct Standards
-Know Your Customer (KYC): VASPs must verify client identity, source of funds, and transaction profiles to detect suspicious activity.
-No Services that Obscure Traceability: VASPs must not offer tools that hinder identification of transaction origin/destination.
XIII- Advertising and Promotion
-Prohibition on Misleading Advertising: VASPs may not mislead users regarding the services offered.
-No Unregulated Capital Market Promotion: VASPs and their promoters may not advertise capital markets activities or unregulated financial products.
XIV- Referral Agreements
-Client Referrals: VASPs may refer clients to agents registered under Law No. 26,831 and may also receive referrals, subject to CNV rules.
-Third-Party Agreements: VASPs may enter into agreements with third parties in Argentina or abroad, provided these comply with CNV rules and transaction records are properly maintained.
XV- Offering Virtual Assets
-Public Offering of Securities: VASPs may not offer VAs that qualify as securities without prior CNV authorization.
-Volatility Risk Warning: VASPs must warn about volatility risks for products with less than 90 days of market history, and these must have a dedicated trading segment.
XVI- Participation in Events
Foreign VASPs not registered in Argentina may sponsor events held in the country without triggering registration obligations, provided that they:
-Disclose they are not registered in the CNV’s VASP Registry.
-Refrain from conducting VASP-regulated activities in Argentina.
-May have a booth at the event if they inform participants they are not authorized to offer services to Argentine residents.
XVII- Information and Reporting
VASPs must comply with reporting obligations according to their category. For instance:
-Maintain updated wallet addresses (proprietary and third-party), if custody is outsourced. This information is confidential.
-By the 15th of each month, submit information on:
Number of clients (individuals and legal entities).
Monthly transaction volume in USD.
Top 10 traded virtual assets and amounts per type.
The first monthly report is due within the first 10 calendar days of November 2025.
Annually, VASPs must submit:
-A systems audit report within 70 days of year-end.
-A report by the Compliance Officer within 70 days of year-end.
-Legal entities must file audited annual financial statements within 5 days of their submission to the Public Registry or the deadline thereof, whichever comes first.
-Individuals must file a sworn statement of assets and liabilities certified by an independent CPA within 90 days of year-end.
The first annual report is due in 2026.
XVIII- De-registration from the VASP Registry
The CNV may cancel a VASP’s registration through an administrative act in the following cases:
-At the VASP’s request, if they prove they no longer conduct activities in Argentina or under the VASP definition.
-Regulatory breaches, if the VASP fails to comply with applicable regulations.
-UIF requests, if the VASP fails to meet financial intelligence reporting obligations.
XIX- Compliance Deadlines
VASPs already registered must comply with the new requirements by the following deadlines:
-Individuals: by July 1, 2025.
-Domestic legal entities: by August 1, 2025.
-Foreign legal entities (under Section 118 of LGS): by September 1, 2025.
-Foreign legal entities that incorporate locally (Section 123 LGS): must register via the Distance Procedures platform (TAD) by September 1, 2025.
Failure to comply with these deadlines will result in de-registration.
VASP registration applications will be suspended until May 26, 2025.
XX- Annual Supervisory Fee
VASPs must pay an annual supervisory fee (approximately USD 10,000 for legal entities), due on October 1, 2025, or upon registration or adjustment to the new requirements.
XXI- Conclusion
General Resolution No. 1058 sets forth a comprehensive regulatory framework for VASPs in Argentina, establishing specific requirements related to registration, financial standing, cybersecurity, and transparency. The CNV aims to protect virtual asset users and enhance market confidence. VASPs must adapt their structures and operations to comply with this regulation and be prepared to fulfill ongoing reporting and audit obligations.
For more information or assistance with compliance, please do not hesitate to contact us.