In a significant development for the cryptocurrency sector in Argentina, the National Securities Commission (CNV) has declared its intention to supervise the country's crypto service providers closely.

The CNV announced its plans to proceed with policing the nation's trading platforms, a move that includes the creation of a national registry of crypto platforms. This registry will likely necessitate that platforms apply for operating licenses, marking a pivotal shift in the regulatory landscape.

This regulatory push follows closely on the heels of the Argentine Senate's approval of a registry for cryptocurrency service providers, a decision reported by Criptonoticias just four days prior to the CNV's announcement.

The Senate's move, influenced by the demands of the Financial Action Task Force (FATF), underscores a growing recognition of the need for comprehensive oversight in the burgeoning crypto sector. The FATF had reportedly warned Argentine officials that the country risked being placed on its 'grey list' should it fail to adequately police its crypto sector, a scenario Buenos Aires is keen to avoid.

The CNV's strategy includes forcing exchanges to adopt protocols for the prevention of money laundering and countering the financing of terrorism.

The CNV will also take on the role of supervising, regulating, inspecting, and sanctioning the nation's crypto platforms. This development comes at a time when crypto ownership in Argentina has surged, driven by spiraling inflation and a lack of confidence in the fiat peso. Many citizens, faced with USD buying caps, have turned to cryptocurrencies as a perceived safe store of value.

The FATF's attention on Argentina and the subsequent regulatory responses can be seen in the context of the country's economic challenges, including its reliance on IMF support.

New President Javier Milei's austerity measures and devaluation of the peso have been steps towards addressing inflation, but the move towards crypto regulation also reflects a need to align with international standards and ensure economic stability.

Critics of the new regulatory framework, such as Ricardo Mihura, president of the crypto pressure group Bitcoin Argentina, warn that these regulations could restrict access to the cryptoasset market. However, for regulatory bodies like the CNV, compliance with FATF recommendations is a critical step towards strengthening and promoting the development of the Argentine capital market.

As Argentina navigates its economic recovery, the balance between fostering innovation in the crypto space and ensuring regulatory compliance will be key.