Argentina's National Securities Commission (CNV) has unveiled a new regulatory framework governing Proveedores de Servicios de Activos Virtuales (PSAVs), or Virtual Asset Service Providers. The regulations, which take effect in 2024, are designed to increase transparency, strengthen legal certainty, and establish formal oversight of companies operating in the country's virtual asset sector.

Argentina has emerged as one of Latin America's most active cryptocurrency markets, driven in part by persistent inflation and peso devaluation that have pushed many residents toward digital assets as a store of value and medium of exchange. The introduction of formal PSAV regulation reflects a broader effort to bring this rapidly growing sector under a coherent legal structure.

The framework requires all companies offering virtual asset services—including custody and transfer of digital assets—to register with the CNV and comply with national regulations. By bringing PSAVs under its jurisdiction, the CNV aims to ensure these entities operate within established legal boundaries while enhancing consumer protection.

A central objective of the new rules is combating money laundering and the financing of terrorism. This aligns with standards set by the Financial Action Task Force (FATF), whose Recommendation 15 calls on member jurisdictions to regulate and supervise VASPs. Argentina's placement on the FATF's list of jurisdictions under increased monitoring has added urgency to implementing such measures.

Registration and Compliance Requirements

Under the new framework:

• Companies providing virtual asset services must register with the CNV.
• PSAVs are subject to CNV jurisdiction to ensure compliance with national regulations.
• The regulations target enhanced transparency and legal security.
• Anti-money laundering (AML) and counter-terrorism financing (CTF) measures are mandatory.
• Users are advised to verify the authorization status of their PSAV before engaging with any service.

The CNV announced the framework via its official X (Twitter) account: https://x.com/CNVArgentina/status/2084278544834654229

Regulatory Context

Proveedores de Servicios de Activos Virtuales (PSAVs) are entities that provide services related to virtual assets, including custody and transfer functions. The CNV's regulatory authority over these entities is intended to ensure compliance with Argentine national regulations and bolster consumer safeguards.

The framework represents a significant step in Argentina's approach to digital asset regulation, creating a structured environment for both users and service providers. It also places Argentina alongside other Latin American countries—such as Brazil and Mexico—that have moved to formalize oversight of virtual asset activities. As firms begin registering and meeting CNV requirements, their compliance processes and operational adjustments will be closely monitored.

Developments in virtual asset regulation across other jurisdictions may also influence local market dynamics, making ongoing awareness of regulatory trends relevant for participants in Argentina's crypto sector.