Non-governmental organization Bitcoin Argentina has proposed a draft bill to regulate the cryptocurrency market in a way that aims to preserve decentralization and strengthen public trust. This proposed legal framework was presented by Bitcoin Argentina’s president, Ricardo Mihura, at LABITCONF 2023 in the capital city of Buenos Aires on November 10th, 2023.
Bitcoin Argentina has previously rejected the idea of regulating the crypto economy. However, they have now shifted their stance, arguing that it is necessary to regulate the industry not only to preserve blockchain but also to hold bad actors accountable to the fullest extent of the law. According to Mihura, “We cannot close our eyes to the number of dishonest actors and projects that circulate with the blockchain brand.”
The core of the proposed legal framework is the separation of cryptocurrency platforms and service providers into three categories: decentralized, local centralized or willing to dialogue with authorities, and global centralized. The aim is to ascertain property rights and provide the broadest possible judicial protection for customers, guaranteeing their right to claim damages in the event of a company downfall. It is understood that Argentina’s judiciary will not intervene in failures from decentralized platforms. Courts will assess whether a cryptocurrency platform is sufficiently decentralized when resolving claims put forward by allegedly injured customers.
Mihura stressed the futility of an outright ban on cryptocurrencies given their global nature. He argued that even the United States cannot effectively prohibit the operation of the unlicensed cryptoeconomy. As a result, Argentina has no possibility of prohibiting its residents from operating in global environments. Instead of a top-down ban, Bitcoin Argentina proposes the best that the law can offer to its citizens, including holding those directly responsible and all those who profit in the marketing chain of a fraud accountable.
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The proposed bill comes ahead of Argentina’s presidential run-off election between Sergio Massa, the country’s economy minister, and Javier Milei, an economist turned politician who wants to abolish Argentina’s central bank and adopt the United States dollar. The country is currently grappling with an inflation crisis, having recorded the fourth largest annual inflation rate in the world at 121.7% over the last 12 months.
In summary, the proposed legal framework seeks to regulate the cryptocurrency market in Argentina in a way that preserves decentralization and strengthens public trust while also holding bad actors accountable. It addresses the varying categories of cryptocurrency platforms and service providers and aims to provide the broadest possible judicial protection for customers. Additionally, it acknowledges the global nature of cryptocurrencies and the futility of an outright ban, instead proposing to utilize the law to the best of its ability to benefit its citizens. Overall, it is a significant step towards establishing a regulatory environment that fosters a healthy and transparent cryptocurrency market in Argentina.
