Argentina and Brazil Fine-tune the Regulatory Frameworks of their Cryptoeconomics

The gaucho country is in search of a “smart regulation”, while Brazil works to use the appropriate terminology to define the uses of each cryptoactive

The Financial Information Unit (UIF in Spanish) and the Central Bank of the Republic of Argentina (BCRA) are discussing a regulatory framework for cryptocurrency operations. The National Securities Commission also participates in the project, as well as the Federal Administration of Public Revenues (Afip).

The information was released on Monday, April 8th, through local news. The statement highlights the intention to generate a “smart regulation” that contributes to the economic value of cryptography.

According to Alberto Echegaray Guevara, advisor to the presidency of The Financial Information Unit, the Argentine authorities are working on new regulation, so that this legislation would be suitable for cryptos and the entire ecosystem.

“We are trying to help the crypto ecosystem, which in Argentina is very strong. We are trying to give a regulation scheme that suits the companies that are in the crypto world”, explains Echegaray.

Regarding the reasons that drove the project, the Argentine authorities consider something that is not regulated cannot have an economic and financial value in the markets. In this way, he argues in favor of the need for a valid regulatory framework in the Argentine territory.

Until now, all the details about the possible regulations discussed in Argentina have not been revealed. However, Echegaray affirms that the main intention is to generate confidence in investors through clear regulation and prevent the use of cryptoactives for illicit activities, such as money laundering.

The BCRA has a research division focused on distributed accounting technology and it is also in a phase of general study, focused on the evolution of technology.

Recently, a delegation from the Ministry of Finance joined the Huobi CEO to explore the economic advantages of blockchain technology and advance in the adoption of cryptoactives.

Brazil Classifies the Uses of Cryptoactives

In another South American country, the legislation of cryptoactives that seeks to define and regulate operations with cryptocurrencies advances. The Brazilian parliamentarian Aureo Ribeiro drafted a bill about that matter. This happens after the rejection of the project he wrote in 2015.

Four years ago, Ribeiro called all digital assets in the same way. Now, cryptoactives will be treated separately and three types of uses will be considered: value reservation, digital representations of real objects, and platform utility tokens.

The new bill also defends the circulation of this type of assets in the nation and increases the penalties for the crimes committed with these, as fraudulent investment schemes.

There are several benefits in the regulation of cryptocurrencies and tokens in the country. Technology, when promoted in a regulated environment, is a fundamental element in the reduction of fraud in commercial relations, due to the inalterability of the information displayed on a blockchain, the parliamentarian comments.

Ribeiro believes that blockchain technology can provide benefits for the public sector, such as preventing corruption and money laundering, an objective that Argentina is also seeking. Both nations try to encourage the adoption and efficient use of cryptoactives.

By María Victoria Rodríguez

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