Crypto License in Argentina
Argentina is a leader as a center of fintech initiatives in Latin America, far ahead of neighboring countries and some European countries, thanks to the dynamic development of technological infrastructure and regulation of the cryptocurrency sector. Gofaizen & Sherle offers professional support and assistance in obtaining Argentina’s crypto license remotely, guaranteeing a complete turnkey solution.
With the growing popularity of cryptocurrencies and the need for financial stability and transparency in Argentina, the regulation of virtual currencies has become highly relevant. Economic instability and strict currency controls have prompted citizens to look for other ways to preserve their savings. In 2023, inflation reached a record 102.5%, which also emphasizes the importance of clear regulatory measures.
To legalize the activities of cryptocurrency exchanges and service providers of virtual assets (PSAVs), the Argentine government has introduced several measures. On March 25, 2024, the National Securities Commission (CNV) issued General Resolution No. 994/2024, which requires PSAVs to comply with the FATF’s anti-money laundering and countering the financing of terrorism (AML/CFT) recommendations. All vendors must register in a special registry before commencing operations, which is effectively a VASP license, and failure to comply with this requirement leads to a ban on operating in the country.
These regulatory measures are aimed at ensuring transparency of operations, consumer protection, and compliance with international standards. They also include restrictions on operations for unregulated providers and controls on advertising directed at Argentine users.
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Advantages of Obtaining a Crypto License in Argentina
Legality and trust
Registration and licensing allow companies to operate legally with cryptocurrencies, which increases trust from customers and partners. This enhances reputation and attracts new customers.
Compliance with international standards
Argentina strictly complies with FATF recommendations on anti-money laundering and combating the financing of terrorism. This helps companies meet international standards, which is important for doing business globally.
Consumer protection
Regulation includes consumer protection measures, which increase the safety of transactions and reduce risks for users.
Economic stability
With high inflation and economic instability, cryptocurrencies have become an important tool for preserving value. Licensed companies have access to this growing market and can offer exchange, storage, and management services for virtual assets.
Opportunities for innovation
Argentina’s complex legislative environment requires the adaptation and adoption of new technologies. Licensed companies can develop and offer innovative products and services, which contributes to their competitiveness.
Government support
Argentina is actively working to improve the environment for cryptocurrency-related businesses, including negotiations with banks and payment systems to improve relationships with licensed operators.
Requirements for a VASP License in Argentina
- Natural and legal persons residing or registered in Argentina must register with the VASP Registry before starting any activity involving virtual assets.
- Provide a complete set of documents proving the identity and compliance of the activity.
- Registration implies compliance with international AML/CFT standards, including monitoring and reporting of suspicious transactions.
- Foreign VASPs are required to register through “.ar” domains if they have operations in Argentina, have agreements with local companies, advertise services to locals, or if their turnover in Argentina exceeds 20% of their total turnover.
- VASPs with a monthly transaction volume of less than 35,000 UVAs (approximately US$27,000) are exempt from mandatory registration, which simplifies the operations of small providers and allows them to avoid additional administrative and financial costs.
- VASPs must comply with customer identification rules and screen customers for money laundering and terrorist financing risks.
- Incorporating automatic transaction monitoring systems, reporting suspicious transactions, and maintaining customer and transaction records.
Procedure for obtaining a Crypto License registration in Argentina
PRE-APPLICATION
Step 1
To register an Argentine cryptocurrency exchange – the equivalent of obtaining an Argentina VASP license – a preliminary application must be submitted to the National Securities Commission (CNV). This application includes the company’s legal data, contact information, and a description of the planned operations.
Registration in the register of virtual asset service providers (VASPs) is mandatory.
SUBMISSION OF CONSTITUENT DOCUMENTS
Step 2
After submitting the pre-application, companies must provide certified copies of the incorporation documents, including articles of incorporation, memorandum of association, and company registration documents in Argentina. These documents confirm the legality of the company’s operations in the country.
FINANCIAL STATEMENTS AND BUSINESS PLAN
Step 3
Companies must submit financial statements showing current assets and expenses, as well as a business plan describing the company’s objectives, sources of funding, and expected revenues. CNV requires information on related companies and partners.
COMPLIANCE WITH KYC AND AML PROCEDURES
Step 4
Companies are required to demonstrate compliance with KYC (customer due diligence) and AML (anti-money laundering) procedures. This includes verifying the identity of customers, monitoring suspicious transactions, and complying with international FATF standards.
VERIFICATION AND INSPECTION
Step 5
CNV verifies and inspects the documents and data provided. If the verification is successful, the company is authorized to operate in Argentina. If there are discrepancies or irregularities, the registration may be rejected.
Types of crypto licenses in Argentina
Virtual asset service providers may obtain the following types of Argentina crypto licenses:
Exchange for fiat currencies
The license allows cryptocurrencies to be exchanged for traditional money such as Argentine pesos or US dollars.
Exchange between virtual assets
The license covers the exchange of one cryptocurrency for another, such as Bitcoin for Ethereum.
Transfer of virtual assets
The license allows transfers of cryptocurrencies between users or to other platforms. Includes sending and receiving cryptocurrencies between wallets and accounts, ensuring easy and secure transactions.
Storage and management
License authorizes to provide secure cryptocurrency storage and management services on behalf of clients.
Financial Services
The license covers the participation and provision of financial services related to the issuance and sale of virtual assets, including ICOs and investment advice.
Regulation of VASPs in Argentina
Until March 2024, there was effectively no legal framework for cryptocurrencies. This changed with the passage of Law No. 27,739, which introduced reforms to prevent money laundering and terrorist financing (AML/FT). The law created a category for virtual asset service providers (VASPs) that are required to monitor and report their activities.
The Argentine Securities Commission (CNV) has been authorized to regulate the crypto industry. The CNV is responsible for creating a comprehensive regulatory framework that includes oversight of virtual asset service providers (VASPs). As part of this mandate, the CNV carries out anti-money laundering (AML) and anti-terrorist financing (FT) registration, monitoring, inspections and compliance. This ensures transparency and security of cryptocurrency transactions in the country.
The CNV has obliged all VASPs operating in Argentina to register in a special registry to meet the standards of the international Financial Action Task Force (FATF). The registration involves the filing of legal and commercial information, as well as a commitment to comply with AML/FT requirements.
Under the amendments made by Law No. 27,739 to Law No. 25,246 regulating AML/FT, two key resolutions were published:
CNV General Resolution No 944/2024:
- Regulates the Registry of Virtual Asset Service Providers (VASPs).
- Obliges natural and legal persons engaged in VASP activities to register in the Registry.
- Applies to residents and non-residents whose activities are related to Argentina.
Resolution No 49/2024 of the UIF:
- Regulates VASPs as reporting parties to the UIF.
- Includes AML/FT obligations such as KYC, transaction monitoring, and reporting.
- Establishes requirements for a risk management framework and internal controls to prevent financial crime.
Both resolutions became effective on March 26, 2024. VASPs already operating in Argentina have a 45-day period to register with the Registry.
VASP Registry
The CNV Resolution requires registration with the VASP Registry before starting operations. The obligation applies to all VASPs, including non-residents, if they meet certain conditions, such as the use of the “.ar” domain or the existence of commercial agreements with Argentine residents. The exception is those VASPs whose transactions do not exceed 35,000 units of purchase value (UVA) per month.
AML/FT Regime
The UIF Resolution requires VASPs to design and implement an AML/FT system with a risk-based approach. This includes:
- Conducting KYC and transaction monitoring.
- Filing suspicious transaction reports.
- Annual risk assessment and compliance with international FATF standards.
Penalties
Non-compliance carries sanctions including warnings, fines, and disqualification for up to five years.
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Taxation in Argentina
Argentina has introduced a new taxation system for cryptocurrency companies. Which includes several key taxes that have a significant impact on the financial burden of cryptocurrency companies.
The main taxes and their application:
Capital Gains Tax (Capital Gains Tax)
- Rate: 15-20%
- Applies to cryptocurrency gains held for more than 365 days.
Value-Added Tax (VAT)
- Rate: 21%
- Applies to certain cryptocurrency-related services such as consulting and IT services.
Federal Income Tax (Corporate Income Tax)
- Rate: 25-35%
- Applies to the net income of cryptocurrency companies.
Split rate by income:
- 0 to 15,502.51 USD.
- Rate: 25%
- From 15,502.51 to 155,025.11 USD
- Fixed amount: ARS 3,875.63 USD
- Rate: 30% on the amount exceeding 15,502.51 USD
- Over 155,025.11 USD
- Fixed amount: 45,732.41 USD
- Rate: 35% on the amount exceeding 155,025.11 USD
Obtaining a Crypto License in Argentina requires careful planning and consideration of all tax aspects to ensure compliance with local laws and avoid penalties.
FAQ on obtaining a VASP license in Argentina
Is crypto regulated in Argentina?
Yes, cryptocurrency is regulated in Argentina. With the adoption of Law No. 27,739 and General Resolution No. 994/2024, mandatory requirements for the registration of Virtual Asset Service Providers (VASPs) in the CNV registry have been introduced, as well as compliance with anti-money laundering and anti-terrorist financing measures.
What is the VASP in Argentina?
A VASP (Virtual Asset Service Provider) in Argentina is a virtual asset service provider that includes companies and individuals engaged in the exchange of virtual assets for fiat currencies or other virtual assets, the transfer, storage, and management of virtual assets, and the provision of financial services related to virtual assets.
Why do I need a VASP license in Argentina?
Argentina crypto license is required for legal activities with virtual assets. It ensures compliance with anti-money laundering and counter-terrorist financing requirements and allows you to operate within the legal framework, which promotes the trust of your customers and partners.
What are the steps to apply for a VASP license in Argentina?
To apply for an Argentina VASP license, you must submit a pre-application to the CNV, provide incorporation documents, prepare financial statements and business plans, demonstrate KYC and AML compliance, and pass the CNV’s compliance review.
How long does it take to obtain a VASP license in Argentina?
Obtaining a VASP license in Argentina can take from 3 weeks to several months, depending on the completeness and accuracy of the documents submitted, as well as the time required by the CNV to verify and process the application.
What are the penalties for operating without a VASP license in Argentina?
Operating without a Crypto License in Argentina can result in the following penalties: a warning, publication of the order at the violator’s expense, fines up to ten times the value of transactions, fines from 15 to 2,500 units, and disqualification for up to five years.
Is there a public register of licensed VASPs in Argentina?
Yes, there is a public register of licensed VASPs in Argentina maintained by the Argentine Securities Commission (CNV). This register is available to the public and contains information on companies and individuals who have obtained licenses to provide services with virtual assets.