RESEARCH: Argentina Cryptocurrency and Digital Asset Securities Regulatory Requirements

Executive Summary

Argentina has not enacted comprehensive cryptocurrency-specific securities legislation, but the regulatory landscape has evolved significantly with the issuance of CNV General Resolution No. 1025 (2024), which establishes a formal registration and licensing regime for Virtual Asset Service Providers (VASPs) under the Comisión Nacional de Valores (CNV). The primary regulators with jurisdiction over digital assets include the CNV for securities matters, the Unidad de Información Financiera (UIF) for anti-money laundering compliance, and the Banco Central de la República Argentina (BCRA) for banking sector conduct, each operating under specific legal mandates including CNV Resolution 1025, UIF Resolution 49/2021, and BCRA Communication A7779.

Should you operate in Argentina? Yes, but only after registering with the CNV's VASP registry under Resolution 1025 and complying with UIF AML obligations, as the regulatory framework—while still evolving—now provides a defined pathway for crypto businesses. Argentina, nuestro país | Argentina.gob.ar

Regulatory Framework

• The Comisión Nacional de Valores (CNV) is the Argentine securities regulator and operates under the authority of the Ley de Mercado de Capitales (Capital Markets Law No. 26,831), which was enacted in 2012 and remains the primary legal instrument governing securities offerings and trading in Argentina. Argentina, nuestro país | Argentina.gob.ar
• The CNV's official website is argentina.gob.ar/cnv, and the regulator has formally codified its authority over digital assets through CNV General Resolution No. 1025 (2024), which establishes a comprehensive regulatory framework specifically for Virtual Asset Service Providers (VASPs), including exchanges and custodians operating in Argentina.
• The Unidad de Información Financiera (UIF), operating under the Ministerio de Justicia y Derechos Humanos, is the designated Financial Intelligence Unit responsible for AML/CFT oversight in Argentina and has issued UIF Resolution 49/2021 (successor to Resolution 30/2017), which specifically addresses virtual asset transactions and extends AML obligations to VASPs.
• Argentina is a member of the Financial Action Task Force (FATF) and underwent its most recent mutual evaluation in 2019 (FATF MER 2019), with the FATF's 2023 updated recommendations on virtual assets and virtual asset service providers creating international pressure that culminated in the issuance of CNV Resolution 1025. Argentina, nuestro país | Argentina.gob.ar
• The Banco Central de la República Argentina (BCRA) has issued Communication A7779 (2022) and subsequent directives prohibiting financial institutions from providing services to crypto exchanges and from holding crypto assets on their own account, focusing on banking sector conduct rather than creating a comprehensive digital asset regulatory framework.
• The Administración Federal de Ingresos Públicos (AFIP) serves as Argentina's tax authority and has issued General Resolution 4614/2019 and General Resolution 4850/2021 on taxpayer declarations of virtual asset holdings, indicating the government's awareness of crypto activities for fiscal purposes.
• Argentina has not enacted a dedicated "crypto law" or virtual asset act passed by the legislature, but CNV Resolution 1025 (2024) provides the primary administrative regulatory framework for VASPs, consolidating the CNV's authority over digital asset service providers into a single codified instrument.
• The Ley de Mercado de Capitales No. 26,831 does not contain specific provisions referencing digital assets, cryptocurrencies, or blockchain technology; however, CNV Resolution 1025 now provides the interpretative and regulatory framework for determining when crypto tokens constitute "securities" and when VASP activities require CNV authorization.
• Argentina's international standing on AML matters is monitored through FATF's mutual evaluation process, and the country's progress in implementing virtual asset regulation has been noted in FATF's follow-up reports on technical compliance, including the 2019 Mutual Evaluation Report and subsequent enhanced follow-up reports.
• The CNV has issued various general resolutions and communications addressing initial coin offerings and digital asset offerings, but the issuance of Resolution 1025 in 2024 now provides a comprehensive regulatory regime that supersedes earlier piecemeal administrative interpretations.

Licensing Requirements

• CNV General Resolution No. 1025 (2024) now creates a specific license and registration category for Virtual Asset Service Providers (VASPs), including cryptocurrency exchanges, custodians, and other digital asset intermediaries, requiring registration with the CNV's newly established VASP registry.
• As of 2024 and continuing into 2025, the CNV has registered numerous VASPs under Resolution 1025, with the CNV publishing a list of registered entities on its official website (argentina.gob.ar/cnv), including both domestic and international platforms seeking to operate in Argentina.
• Entities engaged in activities that fall within the definition of securities intermediation under the Ley de Mercado de Capitales No. 26,831 continue to require registration with the CNV, and digital asset businesses whose tokens are deemed securities are now subject to the framework established by Resolution 1025.
• The CNV's registration regime for securities intermediaries includes categories such as "Agentes de Liquidación y Compensación" (clearing and settlement agents), "Agentes de Negociación" (trading agents), and "Agentes de Colocación y Distribución" (placement and distribution agents), and now includes the new VASP category created by Resolution 1025, which supplements rather than replaces existing intermediary categories.
• Capital requirements for CNV-registered securities intermediaries are established by CNV regulations and vary by category, with minimum capital amounts that have been periodically updated; Resolution 1025 establishes specific capital requirements calibrated for VASP operations.
• The application process for CNV VASP registration under Resolution 1025 requires the submission of corporate documentation, financial statements, compliance policies, AML programs, and background information on directors and officers, with the CNV required to review applications within a defined timeframe.
• Structural requirements for CNV-registered VASPs include maintaining a legal presence in Argentina, appointing a compliance officer, implementing internal control systems, establishing AML/KYC procedures aligned with UIF requirements, and demonstrating adequate corporate governance standards.
• Multiple entities have been registered by the CNV as VASPs under Resolution 1025 since its enactment, including major cryptocurrency exchanges operating in Argentina, with the CNV maintaining a publicly accessible registry of all authorized VASPs.
• The BCRA's Communication A7779 (2022) restricts financial institutions from providing services to unregistered crypto exchanges and from holding crypto assets on their own account, effectively requiring VASPs to obtain CNV registration before accessing banking infrastructure.
• Companies seeking to operate as securities intermediaries or VASPs under the existing framework must be constituted as corporations under Argentine law with their registered office in Argentina, and foreign entities must establish a local subsidiary to apply for CNV registration under Resolution 1025.

AML/KYC Requirements

• The Unidad de Información Financiera (UIF) has issued Resolution 61/2011 and subsequent amendments that classify "exchange houses" and "money transfer companies" as regulated entities subject to AML obligations, and UIF Resolution 49/2021 extends these obligations specifically to VASPs engaged in virtual asset transactions, aligning with FATF standards.
• UIF Resolution 49/2021 specifically addresses the obligation of obliged entities, including VASPs, to conduct customer due diligence (CDD), requiring the identification and verification of clients' identities using official identification documents and implementation of risk-based customer profiling.
• Enhanced due diligence (EDD) obligations under UIF Resolution 49/2021 apply to politically exposed persons (PEPs), requiring obliged entities to implement additional verification measures, obtain senior management approval for business relationships with PEPs, and conduct ongoing enhanced monitoring of such relationships.
• Suspicious transaction reporting (STR) obligations arise under UIF Resolution 49/2021, requiring obliged entities to file reports with the UIF within 48 hours (for urgent cases) or 10 business days (for standard cases) when they detect transactions that may be linked to money laundering or terrorist financing.
• Record retention requirements under Argentine AML law mandate that obliged entities maintain customer identification records and transaction documentation for a minimum period of ten years from the conclusion of the business relationship or the execution of the transaction, as established under UIF Resolution 49/2021.
• Beneficial ownership identification is required under UIF Resolution 49/2021, obliging entities to identify the ultimate beneficial owners of legal entities with whom they conduct business relationships, and this requirement extends explicitly to virtual asset transactions and VASP activities.
• The UIF's risk-based approach requires obliged entities to develop and implement internal AML policies, procedures, and controls that are proportionate to their risk profile, with Resolution 49/2021 requiring VASPs to conduct risk assessments specific to their digital asset operations.
• With the implementation of CNV Resolution 1025, crypto exchanges and VASPs are now required to register both with the CNV for licensing purposes and with the UIF as obliged entities, providing supervisory oversight that was previously unavailable when registration was voluntary.
• UIF Resolution 49/2021 does not distinguish between government-issued digital currency, central bank digital currency (CBDC), or privately issued crypto assets, creating some ambiguity about the scope of obligations for businesses dealing in various forms of digital currency, though the CNV's VASP registry under Resolution 1025 provides clarifying guidance.
• The UIF has begun conducting inspections and examinations of registered VASPs under the new framework established by Resolution 49/2021 and CNV Resolution 1025, representing a shift from the historical enforcement gap that existed in the crypto sector.

Enforcement Actions

• The CNV has issued cease-and-desist orders against certain digital asset platforms conducting unregistered public offerings of tokens that the CNV characterized as securities, utilizing the enforcement powers confirmed under CNV Resolution 1025, with case details published on the CNV's official website.
• Various provincial authorities in Argentina have taken administrative actions against cryptocurrency firms operating without proper registrations, with provincial securities regulators asserting jurisdiction over certain digital asset activities under provincial law, though CNV Resolution 1025 now provides a unified federal framework.
• The UIF has imposed administrative fines on certain financial institutions for AML compliance failures that involved crypto-related transactions, with penalties ranging from ARS 1 million to ARS 10 million (approximately USD 2,700 to USD 27,000) based on the severity of violations and institutional size.
• Argentine courts have handled cases involving cryptocurrency fraud and unauthorized investment schemes, with criminal prosecutions proceeding under general fraud statutes rather than securities or digital asset-specific laws, including notable cases involving unauthorized collective investment schemes.
• The CNV has begun publishing enforcement actions specifically targeting virtual asset providers under Resolution 1025, with the regulator's website providing information on sanctioned entities and the compliance requirements for registered VASPs.
• Several cryptocurrency exchanges have been subject to regulatory proceedings by the CNV for operating without registration, with Resolution 1025 providing the basis for administrative sanctions and mandatory registration before the regulator issues orders to cease operations.
• The BCRA has taken measures against banks that maintain business relationships with crypto exchanges that are not registered with the CNV, with Communication A7779 providing the regulatory basis for terminating banking services to unregistered VASPs.

Tax Treatment

• The Administración Federal de Ingresos Públicos (AFIP) has issued General Resolution 4614/2019 requiring taxpayers to declare virtual asset holdings in their annual income tax returns, and General Resolution 4850/2021 addressed the tax treatment of income derived from digital asset transactions, including specific reporting requirements for VASPs.
• Income derived from cryptocurrency trading and investment is generally treated as taxable income under the Ley de Impuesto a las Ganancias (Income Tax Law No. 20,628), with profits potentially classified as investment income or business income depending on the taxpayer's activity level, frequency of transactions, and commercial intent.
• Capital gains from the sale of cryptocurrencies are subject to income tax under the Argentine tax framework, with rates ranging from 5% to 15% for residents depending on the income bracket and nature of the transaction.
• The Impuesto sobre los Bienes Personales (Personal Assets Tax) has been extended to cover virtual assets, requiring Argentine residents to include cryptocurrency holdings in their annual wealth declarations, with rates up to 1.75% for assets exceeding ARS 10 million.
• Value-added tax (IVA) does not typically apply to cryptocurrency exchange transactions under current AFIP interpretations, but the legal status of crypto assets for VAT purposes remains uncertain and has not been conclusively resolved by formal tax guidance, creating potential exposure for businesses.
• AFIP has issued General Resolution 4614/2019 and subsequent clarifications addressing specific tax aspects of cryptocurrency transactions, though taxpayers must still rely on general tax principles and piecemeal administrative interpretations for complex situations.
• The temporary "impuesto a la riqueza" (wealth tax) enacted in 2020 and extended through subsequent measures (including Law 27,638) included virtual assets in the tax base, subjecting cryptocurrency holdings to this extraordinary tax at rates up to 3.5% for large fortunes.
• Argentine tax law provides no specific rules for determining the cost basis of cryptocurrency holdings received through mining, airdrops, or other non-purchase methods, creating practical difficulties for compliance, though AFIP has indicated it expects taxpayers to use reasonable valuation methodologies.
• Businesses accepting cryptocurrency as payment for goods or services are generally required to recognize the fair market value of the crypto received as revenue, with AFIP expecting valuation at the exchange rate on the date of receipt or using a recognized exchange rate provider.

Key Gaps & Risks

• While CNV Resolution 1025 establishes a formal framework for VASPs, there remain gaps in the regulatory framework, particularly regarding decentralized finance (DeFi) protocols, non-fungible tokens (NFTs), and other emerging digital asset innovations that may not fall clearly within the VASP definition.
• Overlapping and potentially conflicting mandates among the CNV, BCRA, and UIF create coordination gaps, and a crypto business may face compliance obligations from multiple regulators that are not fully harmonized, though Resolution 1025 represents an attempt to coordinate CNV authority with UIF AML requirements.
• The requirement for securities intermediaries and VASPs to be constituted as Argentine corporations presents a significant barrier for foreign crypto businesses seeking to operate in Argentina, though Resolution 1025 provides for registration of foreign entities that establish local subsidiaries.
• Regulatory enforcement in the crypto space remains uneven and unpredictable, and businesses face the risk of retrospective regulatory action where authorities may apply current interpretations to past conduct without clear statutory basis, particularly for activities predating Resolution 1025.
• The effective ban on banking services for crypto businesses not registered with the CNV, implemented through BCRA Communication A7779 and supervisory pressure, creates operational risks that can cause sudden loss of access to the financial system if registration is not maintained.
• Crypto businesses in Argentina face ongoing compliance costs associated with maintaining CNV VASP registration under Resolution 1025 and UIF registration under Resolution 49/2021, including costs for compliance officers, AML systems, and audit requirements.
• The fragmentation of Argentine tax law as applied to crypto creates substantial compliance burdens, including risks of penalties for incorrect reporting that are not fully mitigated by the limited AFIP guidance available, with penalties ranging from ARS 500,000 to ARS 2 million for non-compliance.
• International pressure from FATF recommendations and peer reviews may result in regulatory changes or enhancements to existing frameworks, creating investment risks and compliance costs for existing market participants who established their businesses under current rules.
• While Resolution 1025 provides a registration pathway, significant uncertainties remain regarding the classification of specific tokens as securities or non-securities, the treatment of stablecoins, and the application of the framework to businesses with hybrid models, creating residual legal risk.
• Digital asset businesses face the risk of cascading regulatory actions where a finding by one regulator triggers consequences from others, and while Resolution 1025 improves coordination between CNV and UIF, the absence of a fully coordinated regulator-led approach compounds this risk.

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