Argentina has unveiled a landmark deregulation bill that intends to bring crypto and blockchain into the country’s traditional financial space. The proposed crypto bill will allow investment funds and financial platforms to hold cryptocurrencies. They can also legally explore smart contracts and tokenized securities.
Notably, the crypto bill was introduced by Deregulation Minister Federico Sturzenegger. With this draft, the minister aims to modernize Argentina’s capital markets. If Congress approves it, the legislation could be a game-changer for crypto, providing it a larger space in the country’s broader financial ecosystem.
Argentina’s crypto bill brings crypto to traditional finance
According to Argentina’s latest deregulation bill, investment funds can include digital assets in their portfolios. But the asset managers should receive approval from Argentina’s securities regulator, Comisión Nacional de Valores (CNV). The investments should also align with the traditional financial space’s policies if the firms intend to invest in crypto. The source stated: “Today, crypto-assets are investment assets; it is a good thing to allow funds to invest in them—subject, of course, to regulations that the CNV must approve. It is not a case of just anyone going out to buy Bitcoin, nor is it just any crypto-asset.”
Interestingly, the crypto bill allows the issuance, custody, transfer, and trading of securities through blockchain technology. One of the main focuses of the bill is real-world asset (RWA) tokenization, which will help the government make capital markets faster, easier, and cheaper.
The crypto bill also envisions legalizing smart contracts. This helps the country to automate agreements, payments, and other financial processes. As smart contracts will eliminate the need for human intervention, the country is seeking to streamline financial operations.
Another major amendment is the use of crypto as collateral for loans. The crypto bill will implement this change, allowing investors to use cryptocurrencies as collateral for loans. This would help crypto investors to access traditional financial services easily.
Argentina targets crypto payments in illegal gambling
It is worth noting that the latest crypto bill comes as part of Argentina’s ongoing efforts to expand its digital asset space along with safeguarding investors. Over recent years, the country has been taking several initiatives exclusively for its crypto and blockchain spaces.
A major bill proposed by the government recently is the Bill for the Prevention of Gambling and Regulation of Online Gambling. In late May, the government presented the crypto bill, which aims to restrict the use of cryptocurrencies in unauthorized gambling platforms.
The authority wants to restrict banks, financial institutions, and crypto exchanges from processing transactions for such betting platforms. The bill stated: “It [the bill] establishes that financial entities, providers of payment services or virtual assets (cryptocurrencies) are prohibited from offering their services to unauthorized gambling operators.”
Beyond payment services, the crypto bill also prohibits the advertising of illegal gambling platforms. The government could penalize any websites or platforms that promote unlicensed betting operators.
