A complete guide to buying cryptocurrencies in Argentina
Though cryptocurrencies are not considered as a legal tender, Argentina is a front runner in adopting these digital assets. As a result of economic instability, depreciation of Argentinian Pesos and foreign exchange restrictions, the Latin American country became one of the earliest adopters of cryptocurrencies like Bitcoins and Dash in the world. Argentina embraced and promoted these digital assets as a protection of its savings against inflation and to overcome the prohibition on purchasing and transferring foreign currencies.
Recommended exchanges for people from the Argentina
Below you will find the top 3 most recommended crypto exchanges for residents in Argentina.
Bitpanda is one of the best crypto exchanges for customers in Europe. Bitpanda has a lot of payment options and one of the most popular is credit cards. With credit card deposit fees at 1.50%, Bitpanda is one of the lowest in the crypto industry and definitely worth checking out.
The UK base cryptocurrency broker CEX, is also a very good place to buy cryptocurrencies. They have been around since 2013 and serve millions of users. They have a wide range of crypto currencies as well as functionality to serve both beginners but also the businesses and institutions.
Coinbase is an excellent choice for purchasing cryptocurrencies with credit card or debit card. Coinbase has a great user experience and they make it possible to deposit and purchase crypto in a very few simple steps.
Cryptocurrencies are not banned in Argentina, which means that they are legal. The Argentinian government has issued a few regulations regarding cryptocurrencies related to taxation and the prevention of money laundering. However, the government has not implemented any specific regulations on the exchanges or even the general use of cryptocurrencies. The authorities have chosen to observe the ongoing developments regarding the impact of these digital assets in the Argentine market.
Securities And Investment Laws
As of now, there are no specific regulations applicable to the sale of cryptocurrencies or any other digital assets under securities laws or investment laws in Argentina. Given the lack of a central issuing authority, Bitcoins, Dash or other cryptocurrencies cannot be classified as securities, which are essentially negotiable instruments into which their issuers incorporate credit rights.
Following the example of securities and exchange commissions around the world, the National Securities Commission (CNV) issued a communiqué on initial coin offerings (ICOs), warning investors of their potential risks regarding lack of specific regulations, liquidity risks, frauds and other pieces of information.
Banking And Money Transmission
In Argentina, cryptocurrencies and digital assets like Bitcoin and Dash are defined by the Financial Information Unit (UIF) as a digit value that can be digitally traded and functions as a medium of exchange, or a unit of account, or a store of value, but does not have legal tender status in any jurisdiction. It is neither issued nor guaranteed by any government or jurisdiction.
The Argentine Civil and Commercial Code (the Civil Code) determines that individuals and legal entities are eligible to have all corresponding rights over the assets that are part of their property, classifying these digital assets into two categories: tangible and intangible.
As opposed to the assets that have a physical entity, intangible assets such as intellectual property do not materialise in the physical sphere. Thus, as a digital representation of value, cryptocurrencies like Bitcoins and Dash are intangible assets that are able to form part of individuals’ and legal entities’ property.
Anti-Money Laundering Rules
Currently, the lone regulation on cryptocurrencies in Argentina is the UIF Resolution, which implements reporting obligations for certain obliged subjects under the Anti-Money Laundering (AML) Law and the Tax Reform Law.
The AML Law lists persons, financial entities, broker-dealers, credit card companies, insurance companies, public notaries, and certain government registries and agencies, that have specific reporting obligations under the AML Law (obliged subjects). They need to provide certain general obligations including applying to know your customer (KYC) procedures, reporting to the UIF if any transaction is suspected of money laundering or terrorism financing, and also abstaining from disclosing to their clients or third parties activities performed in compliance with that statute.
As of now, Argentina poses no specific regulations on exchanges or digital asset firms. However, if anyone wants to publicly offer securities in Argentina, they need to request a public offering authorisation from the CNV.
A licence from the CNV is mandatory for the trading of securities. Therefore, the exchange of cryptocurrencies as a permanent activity needs to acquire a licence if the digital asset being exchanged is termed as security.
However, considering a lack of a central issuing authority, cryptocurrencies like Bitcoin and Dash cannot be classified as securities. As per the current rules, there are no restrictions on cryptocurrency miners, issuers and sponsors.
During Argentina’s toughest times like economic instability, depreciation of their currency and foreign exchange restrictions, cryptocurrency proves to be a saviour to the country. With the gaining popularity of digital assets like Bitcoin and Dash, cryptocurrency is a valuable investment in Argentina.
Bitpanda is the leading crypto exchange in Europe with more than 1 million users. You can trade more than +30 cryptocurrencies, gold, silver and other metals.