Argentina Implements New Regulations for Companies Offering Crypto Services

Previously it was reported that Argentina was preparing for the second round of elections with a crypto agenda. In the first round of presidential elections in Argentina, Javier Milei, the libertarian candidate, and Sergio Massa, the current economy minister, will face a second round election that has crypto elements in it.

Milei has repeatedly proposed the abolition of Argentina's Central Bank and the introduction of the dollar as legal tender in the country as the main points of his hypothetical government.

On the other hand, Massa recently discussed the creation of a national digital currency, which his government would use to reduce tax costs and limit tax evasion by subjecting Argentina's economy to more formality.

Massa, who is leading the first round of elections, also added another element to consider: the possibility of using gas from Vaca Muerta, one of Argentina's most significant crude oil reserves, to mine bitcoin.

At a meeting with Argentinian cryptocurrency enthusiast Santiago Siri, Massa said he liked the Vaca Muerta proposal because it resulted in a reduction in carbon emissions.

“This country has all the symbolic capital that Argentina will need in the years to come,” said Massa, quoted from Bitcoin.com, Wednesday (1/11/2023).

As inflation continues to hit Argentina the country's citizens are turning to cryptocurrencies as a safe haven, seeking protection from their collapsing local currency.

Digital currency adoption is particularly high in Argentina at 23.5 percent, significantly higher than the estimated global crypto ownership rate of 11.9 percent, according to research firm GWI.