Argentina's leader, President Javier Milei, known for his libertarian and anarcho-capitalist ideologies, recently put forward a new decree mandating the establishment of a mandatory Registry of Virtual Asset Service Providers, as revealed in late March by the Comisión Nacional de Valores (CNV). This unexpected move has diverged from the anticipated pro-Bitcoin stance of Milei's government, causing ripples of disapproval and concern both locally and internationally within the crypto community and investor circles linked to Argentina. Forbes notes that the CNV's updated directive requires all entities and individuals engaged in varied crypto-related activities such as purchasing, vending, transmitting, obtaining, lending, or trading to undergo a registration procedure.

The ruling, sanctioned by the Argentinian senate on March 14, is not limited to businesses within the nation's borders but extends its grasp to those operating remotely. CNV President Roberto E. Silva emphatically cautioned that entities failing to register will not be permitted to function within the country, stressing the government's dedicated enforcement of this new regulation. Critics have swiftly emerged, contending that this decision marks a significant deviation from the economic liberties promised by Milei upon his assumption of office in December 2023. His envisioned agenda aimed at reconstructing and dollarizing the domestic economy, potentially paving the way for enhanced acceptance of Bitcoin and other cryptocurrencies in Argentina. Manuel Ferrari, a member of an Argentine NGO and one of the creators of the Money On Chain protocol, expressed dissatisfaction during an interview, denouncing the establishment of a registry intended for facilitating Bitcoin transactions, arguing that Bitcoin embodies a form of currency and not a security.

Ferrari's sentiments echo a broader narrative suggesting that this regulatory step is not only superfluous but potentially harmful, favoring state officials, legal representatives, and individuals in the compliance sector, thereby straying from Milei's professed libertarian ideals. Nicolas Bourbon, co-founder of the KamiPay payment solution, presented a nuanced viewpoint, proposing that while Milei might not openly rally behind Bitcoin, he retains a reverence for monetary liberation, indicating that this regulation is not aimed at users but rather at appeasing global financial entities' demands. This regulatory overhaul has encountered resistance not solely within the country's boundaries but also abroad. Bitcoin proponent Max Keiser expressed his disappointment via X (formerly Twitter), alleging Milei's failure to grasp the fundamental essence of Bitcoin and foreseeing undesirable outcomes. According to Keiser, "Javier Milei makes his primary blunder. He missed understanding Bitcoin's core principles, and now he shall face the consequences."

In a similar vein, an Argentine Bitcoin user identified as Neo (@21Millones_BTC) rued the immediate implications of the novel policy, noting that custodial platforms like Bela and Strike have already curtailed Bitcoin transactions, a move deemed contradictory to the ethos of freedom often linked with cryptocurrencies. "Milei has turned out to be a pretense, a nominal weak libertarian. I used to remit Bitcoin payments to contractors in Argentina via Lightning until a few months ago. However, since this 'libertarian' government took office, all custodial platforms have restricted Bitcoin transactions, including Bela, Strike, and many others. What happened to FREEDOM? Never trust politicians; they are all deceiving heroes," Neo expressed.

Argentina currently occupies the 15th spot in Chainalysis' Global Crypto Adoption Index Top 20, underscoring its importance within the global cryptocurrency realm. The introduction of this regulatory framework signifies a pivotal moment for Argentina's crypto sphere, with forthcoming implications shrouded in uncertainty. While the CNV's initiative strives to align with the Financial Action Task Force's stipulations, the prompt response from the crypto community serves as evidence of a chasm between the government's actions and the libertarian principles purportedly championed by President Milei.