According to the Buenos Aires Times, Argentina is preparing to include cryptocurrency firms in its overall regulatory framework against the riciclaggio di denaro (AML).
Argentina's Unidad de Información Financiera (UIF), which deals with money laundering risks, would be considering adding cryptocurrency firms to the list of firms that must file AML reports.
If these rules are passed, they will have a significant impact on how cryptocurrency companies deal with regulators in Argentina. These businesses are currently required to follow tax reporting guidelines for 2019 only.
According to a source familiar with the situation, the new law is expected to take effect in 2022. Crypto firms will be required to follow KYC standards and report unusual cryptocurrency transactions.
The state of cryptocurrency in Argentina
Argentines working in the cryptocurrency industry have slammed a potential anti-crypto restriction that the IMF deal introduced.
The deal, which limits and provides more resources for Argentina to pay its $ 45 billion debt to the IMF, also suggests a series of steps intended to stifle growth in the crypto industry in the country.
According to some in the country, this implies the implementation of rules and measures that can dampen the adoption of cryptocurrencies in the nation.
Following reports on regulations targeting cryptocurrencies, a non-profit organization called Bitcoin Argentina wrote to the government requesting all data regarding the implementation of these new measures designed to stifle bitcoin adoption in the country.
Franco Bianchi, CMO of Lemon, an Argentine startup providing cryptocurrency payment solutions, said:
“Working in a context of clear rules that encourage the adoption of cryptocurrencies”.
Another well-known cryptocurrency enthusiast, Franco Amati, said he thinks this was intended to stifle a possible bitcoin funding effort, such as the one El Salvador is considering.
Crypto and Money Laundering Regulations
This isn't the first time that a regulator responsible for fighting money laundering has targeted crypto companies.
The Financial Conduct Authority (FCA) in the UK implemented a similar policy in March 2021.
Cryptocurrency firms - as determined by the FCA - have been forced to submit annual financial crime reports since then, which include statistics on the number of suspicious activity reports submitted during that period.
The United States and the European Union have recently made significant regulatory changes to cryptocurrency policies.