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Argentina Suppresses Cryptocurrency Through Anti-Money Laundering Regulations

Argentina is planning to amend its anti-money laundering legislation to cover cryptocurrency enterprises.

Argentina is reportedly planning to incorporate bitcoin firms into its broader anti-money laundering (AML) regulatory framework, according to the Buenos Aires Times.

Argentina’s Unidad de Información Financiera (UIF) is the country’s competent authority for regulating money laundering threats, and it is apparently trying to add cryptocurrency firms to the list of entities required to file AML reports.

According to a source “with direct knowledge of the situation,” the new regulations are scheduled to take effect this year.

If these restrictions are adopted, they will fundamentally alter how bitcoin firms engage with Argentina’s regulators. These firms are apparently solely responsible for complying with 2019 tax reporting standards at the time of writing.


Regulations governing cryptocurrency and money laundering

Of course, this is not the first time a regulatory organisation charged with policing anti-money laundering threats has targeted bitcoin firms.

In March 2021, the Financial Conduct Authority (FCA) in the United Kingdom adopted the same decision.

Since then, cryptocurrency businesses—as defined by the FCA—have been required to file annual financial crime returns—records that include, among other things, the number of suspicious activity reports made during the reporting period.

“This policy statement suggests that more organisations and crypto asset businesses be included in the return’s scope based on their business activities and possible money laundering threats,” the FCA stated at the time.

Recently, both the United States and the European Union have taken significant regulatory action against cryptocurrency.

President Biden signed a long-awaited crypto-related Executive Order earlier this month, the Executive Order on Ensuring Responsible Development of Digital Assets. A portion of this Executive Order is devoted to combating illicit money in the cryptocurrency business.

European Parliament parliamentarians approved the Markets in Crypto Assets Regulation legislative package across the pond.

While the MiCA package is not yet law, it intends to harmonise the EU’s approach to regulating the broader crypto economy.


Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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