In a proactive move aimed at safeguarding market integrity, Argentina has taken decisive steps by introducing a national registry for crypto exchanges, signaling a robust regulatory stance in the rapidly evolving cryptocurrency sector.

The National Securities Commission (CNV) of Argentina has initiated the Virtual Asset Service Provider (VASP) registry, attracting close to a hundred applications from individuals and legal entities, according to official government sources.

Under the ambit of the registry, prospective entities seeking to provide crypto trading services within Argentina are required to undergo a thorough registration process. Successful applicants must await formal confirmation of their registration before commencing operations. To date, the CNV has processed 85 applications from legal entities, approving 35 registrations, including four foreign platforms, albeit without disclosing their identities.

Entities compliant with the registration mandate are authorized to continue their operations in Argentina, while those failing to adhere to regulatory protocols will face suspension until formal registration is secured, as outlined in the official announcement.

Argentina initially unveiled stringent registration prerequisites for the crypto sphere in late March, with CNV chair Roberto E. Silva emphasizing the country's concerted efforts to bolster compliance measures aimed at combatting money laundering and terrorism financing.

However, amidst these regulatory strides, the local crypto community has voiced apprehensions regarding heightened government oversight. Manuel Ferrari, a prominent member of the Argentinian NGO Directive and co-founder of the Money On Chain protocol, decried the registry as ill-conceived, contending that Bitcoin transcends mere financial securities and should not be subject to such regulatory frameworks.

Despite dissenting voices, reports indicate a surge in crypto adoption among Argentinians, driven by economic uncertainties, prompting both legitimate transactions and fraudulent activities. The CNV's regulatory intervention aims to strike a delicate balance between mitigating inherent risks associated with crypto transactions while fostering an environment conducive to innovation within the burgeoning crypto landscape.