Registration of Virtual Assets Service Providers Now Regulated

The Argentine Securities Commission (CNV) issued Resolution 994/2024 on March 22, 2024, regulating the registration of Virtual Asset Service Providers (VASP) before the Registry of Virtual Asset Service Providers (VASP Registry).

The VASP and the VASP Registry originate from article 4 of Law 27739. Resolution 994/2024 reflects Argentina's intention to comply with the standards of Recommendation 15 of the Financial Action Task Force (FATF) regarding the fight against money laundering and terrorist financing in transactions with virtual assets.

The VASP Registry includes all individuals residing in Argentina, legal entities incorporated in Argentina, and those entities incorporated abroad that carry out activities in Argentina for an amount greater than the equivalent to 35,000 monthly purchasing value units (UVA). The value of the UVA used to calculate this will be the one corresponding to the last day of the month calculated.[1]

It will be considered that VASP incorporated abroad carry out activities in Argentina when they use ‘.ar’ domains for their activity, when they aim their offers and/or advertising to persons residing in Argentina, when they receive funds or assets locally from Argentine residents through the ‘ramp services’, and/or when the turnover in Argentina exceeds 20% of their total turnover. For the latter, only the total turnover of the activity or activities for which the VASP must be registered will be considered.

The Resolution establishes that VASP must register before the VASP Registry to carry out in Argentina any of the activities or transactions mentioned in the VASP definition.[2] This registration does not imply the CNV grants them a license. The CNV clarifies that such license may be required in the future, subject to the corresponding regulation.

The VASP Registry is not available for individuals and/or legal entities residing, domiciled, or incorporated in jurisdictions included in the list of non-cooperative jurisdictions for tax transparency purposes and that the FATF considers Non-Cooperative or High Risk.

VASP subject to registration must also include a disclaimer in their website and in any social network or media related to their activity. This disclaimer is specifically indicated in article 5 of the Resolution.

Finally, the Resolution establishes that VASP carrying out any of the regulated activities must apply for registration to the VASP Registry before May 9, 2024.