Registry of virtual asset service providers – Law No. 27,739
Banking & Financial Institutions Department Report | Registry of virtual asset service providers – Law No. 27,739
As outlined in our bulletin dated March 18, 2024, we wish to inform you about the approval of Law 27,739 (the “Law”) and the partial enactment decree No. 254/2024 (the “Decree”), both published in the Official Gazette on March 15, 2024. These regulations establish the creation of a Registry of Virtual Asset Service Providers (“Proveedores de Servicios de Activos Virtuales” or “PSAV”), overseen by the National Securities Commission (“Comisión Nacional de Valores” or “CNV”).
The Law defines virtual assets as “digital representations of value that can be traded and/or transferred digitally and used for payments or investments.” Additionally, it excludes fiat currencies issued by the Argentine state or other jurisdictions from this definition.
According to the Law, a PSAV is any individual or legal entity conducting business that performs one or more of the following activities for or on behalf of another individual or legal entity:
– Exchange between virtual assets and fiat currencies;
– Exchange between one or more forms of virtual assets;
– Transfer of virtual assets;
– Custody and/or administration of virtual assets or instruments allowing their control; and
– Participation in and provision of financial services related to the offering or sale of a virtual asset.
The National Securities Commission will manage a centralized registry of PSAVs, exercising supervisory and regulatory functions in accordance with Capital Market Law No. 26,831. Any entity or individual operating as a PSAV, whether incorporated in Argentina or abroad, must register and report its activities to the CNV.
The CNV will regulate this activity based on principles ensuring user and consumer protection, information security, operational efficiency, prudential standards promoting transparency and good corporate governance, as well as measures against money laundering, terrorism financing, and the proliferation of weapons of mass destruction, while safeguarding public savings.
Furthermore, PSAVs are obligated subjects under the Financial Information Unit (“Unidad de Información Financiera” or “UIF”).
Finally, the Decree stipulates that these regulations will come into effect within 8 calendar days from the publication of the Law in the Official Gazette.
Please do not hesitate to contact us for any questions or additional information you may require.
Kind regards,
Luciana Denegri
Daniel Levi
Felipe Videla