Three months after crypto exchange FTX collapsed, Argentina’s government is weighing creating oversight requirements on crypto companies, according to people with direct knowledge of the matter.
The country’s local regulator, known as the Comisión Nacional de Valores (CNV), is studying launching requirements on crypto companies, such as proof of solvency, said the people, who asked not to be named discussing the plans. The CNV is planning as it awaits a congressional vote that could give it oversight authority of the crypto sector in coming weeks.
Argentines are among the biggest adopters of crypto in the region, in part due to stringent currency controls and annual inflation of almost 100 percent. Regional users were heavily affected by FTX meltdown, with some of the largest local crypto exchanges seeing withdrawals of as much as 25 percent of their deposits, according to a person with knowledge of the matter.
Argentina’s government is seeking to stregthten regulation before of a visit by the global money-laundering watchdog FATF. whici is expected for September. Officials and regulators plan to demand that crypto companies have similar requirements as other in capital markets, such as knowledge of the customer, transprency about their activities, suitability of their board and reporting of suspicious transactions over US$1.000, the people said.
SOURCE: batimes.com.ar