Argentina partners with El Salvador to enhance cryptocurrency regulation, improve investor protection, and share expertise on digital asset oversight.
Argentina’s National Securities Commission (CNV) has taken a major step in improving cryptocurrency regulation. The CNV has signed a collaboration agreement with El Salvador’s Digital Asset National Commission (CNAD) to exchange information and enhance the regulation of cryptocurrency exchange operations. The purpose of this collaboration is to enhance the VASP and digital asset legal entities’ oversight in both countries.
The CNV and CNAD cooperation is based on the signing of a cooperation agreement between Roberto E. Silva, president of CNV, and Juan Carlos Reyes, head of CNAD. The two organizations will also exchange information and assets to enhance the regulation environment. This partnership is meant to curb fraud relating to the digital asset market thus protecting investors.
Argentina Benefits from El Salvador Expertise in Crypto Regulation
El Salvador has garnered appreciation from Silva for its role in the use of cryptocurrencies, particularly Bitcoin. He stressed that Argentina would like to follow the best practices of El Salvador. Both countries are committed to the protection of investors and the future of the digital asset regulation.
The capacity-building activities envisaged under the agreement are, for instance, workshops and awareness raising events. Such measures will enhance the quality of the regulatory systems of both countries. For example, Argentina has been trying to enhance its supervision of VASPs this year as it became within its jurisdiction.
The CNV has been involved in the process of establishing a registry of the providers of cryptocurrencies. It has also done so with new regulations which are now at a consultation stage. In this context, Argentina benefits from the experience that El Salvador has recently embarked on as the first country to adopt Bitcoin as a legal tender. The cooperation was launched with a meeting between CNV and CNAD representatives in May.
While the CNV targets VASP and marketable virtual assets, El Salvador’s CNAD controls all forms of digital assets and financial securities. The Central Reserve Bank of El Salvador, and the Superintendency of Finance also regulate Bitcoin as it is the legal tender of the country.
Lastly, it will result in the improvement of regulatory authority between the two countries. Through the cooperation, both Argentina and El Salvador believe that they will be able to improve the regulations on investors and bring innovation to the crypto industry.
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