Financial institutions may not carry out transactions or allow their clients to make transactions with digital assets, including crypto assets and those assets whose yields are determined on the basis of the changes in their value, which are not regulated by a national authority and authorized by the BCRA.
The measure adopted by the Board of the BCRA seeks to mitigate the risks associated with transactions with these assets that could affect the users of financial services and the financial system as a whole.
The BCRA reminded that the activity of financial institutions is aimed at financing investment, production, trade, and consumption of goods and services for the domestic demand and export.
The different players involved in transactions with these assets may not be established in Argentina, which could generate deviations from the general regulations, stated the BCRA.
In May 2021, the BCRA and the National Securities Commission (Comisión Nacional de Valores, CNV) issued a document providing information on, and warning users about, the potential risks and implications of crypto assets. They also urged for caution to mitigate a potential source of vulnerability for users and investors.
Recommendations are available on the BCRA website, in the following link.
The publication highlighted that “crypto assets can be defined as a digital representation of value or rights that are transferred and stored electronically by using Distributed Ledger Technology (DLT) or any other comparable technology.”
In addition, some of the risks associated with this type of transaction were mentioned: high volatility, risks associated with operational disruptions and cyberattacks, money laundering/terrorist financing, as well as potential breach of forex regulations, lack of safeguards and complete information that the current regulations provide for the users of financial services and the cross-border nature of the transactions.
May 5, 2022