Crypto License in Argentina
Navigating Regulatory Requirements
Argentina has emerged as a leading hub for fintech innovation in Latin America, driven by an evolving technological landscape and a commitment to cryptocurrency regulation. In your exploration of this dynamic environment, you might notice how Argentina’s regulatory framework for virtual assets seeks to foster financial stability and transparency amidst ongoing economic challenges. The country’s high inflation rate, reaching over 100% in recent times, underscores the urgency for a robust regulatory approach to cryptocurrencies.
Securing a Cryptocurrency License in Argentina
Benefits of Securing a Cryptocurrency License in Argentina
Getting a cryptocurrency license in Argentina provides numerous advantages for businesses operating in this dynamic environment. One key benefit is the enhanced legitimacy and trust that comes with registration. Legal recognition helps build credibility with your customers and strengthens partnerships. In Argentina, adhering to international regulations, like the FATF guidelines on anti-money laundering, is crucial. This ensures your business is compliant not only locally but also on a global scale, which is significant when considering international operations. The emphasis on consumer protection in regulations ensures safer transactions, minimizing risks for those using your services. This protection is vital in building a reliable and stable cryptocurrency sector. With the economic challenges faced in Argentina, cryptocurrencies play a crucial role in maintaining value. By obtaining a license, you can tap into the thriving crypto market, offering services related to exchange, storage, and management of digital assets. Innovation is at the forefront for licensed companies in Argentina. The need to adapt to a complex legal framework promotes the development of cutting-edge products, keeping your offerings competitive.Furthermore, the Argentine government is supportive of digital currencies, working with banks and payment providers to foster better collaboration, making it a conducive environment for your crypto ventures.
Requirements for a VASP License in Argentina
To operate a Virtual Asset Service Provider (VASP) in Argentina, you must first register with the VASP Registry if you or your business are resident or established there. This registration requires you to submit comprehensive documentation verifying the identity and legitimacy of your operations. Adhering to international Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) standards is crucial. This includes implementing systems for transaction monitoring and reporting any suspicious activities. If you are a foreign VASP conducting business in Argentina through local agreements, advertising to locals, or exceeding a revenue threshold of 20% of your total turnover within the country, you must register using “.ar” domain names. Small-scale operators, with monthly transactions under 35,000 UVAs (around US$27,000), are exempt from mandatory registration, reducing their burden and costs. Compliance involves ensuring traceability by validating customer identities and conducting AML checks to mitigate money laundering and terrorist financing risks. This means you should implement automated transaction monitoring systems, maintain detailed records, and readily report any suspicious transactions.
Our Service for Acquiring a Crypto License in Argentina
Choosing the right service bundle can simplify obtaining a crypto license in Argentina for your business. Below are two popular packages tailored to suit different needs.
All-in-one – starts from $19,900
This package provides comprehensive support, covering all regulatory needs for a Virtual Asset Service Provider (VASP). You’ll receive a full turnkey company setup, two CDI’s, and a registration address valid for a year. It includes a detailed AML/KYC policy, a VASP license, and apostilled and translated corporate documents. Assistance with opening an EMI account is also part of the package.
Basic Package – starts from $8,900
Meant for those who require minimum compliance, this option covers full company formation and a registered address for one year. Included are corporate documents in Spanish, a standard AML/KYC policy, and VASP activity registration with CNV and UIF.
Additionally, securing a local legal representative, a mandatory aspect for inactive companies, starts at $800 per month.
Steps to Acquire a Crypto License Registration in Argentina
Gathering Initial Documents
Begin by gathering essential documents. Ensure you have selected a preferred company name. Collect passport copies of at least two shareholders and all directors, duly notarized and apostilled. You must also provide a utility bill for each director and shareholder to confirm addresses of residence. Prepare a notarized and apostilled power of attorney. Lastly, create a concise business model detailing your company structure and operations in 1-2 pages.
Process of Enrolling and Securing the License
Register the company and acquire a CDI for directors and shareholders. Prepare comprehensive corporate documents and gather further information about your business. This includes identifying risk factors, customer demographics, business nature, and developing AML/KYC policies specific to your operations. Submit your application for a crypto license to the relevant Argentinian authorities, maintaining communication throughout. Register your Compliance Officer with UIF and complete the application process.
Opening a Business Account
Analyze the most appropriate banks or EMIs, evaluating their risk tolerance compared to yours based on your AML policies. Collect necessary documents to begin the process, such as fund flows, wealth sources, account purpose, key partners, company website, and utility bills. Guide your company methodically through the account establishment process to ensure compliance and efficiency.
Varieties of Digital Asset Service Licenses in Argentina
Currency Conversion Licenses
This license permits the conversion of digital currencies into traditional money like pesos or dollars.
Swapping Digital Currencies
This certification enables the exchange between different virtual currencies, such as swapping Bitcoin with Ethereum.
Digital Asset Transfers
With this license, you can manage the movement of digital assets between users or platforms, ensuring secure transactions between accounts or wallets.
Secure Management and Custody
This allows you to offer services related to the secure storage and management of cryptocurrencies on behalf of your clients.
Finance-Related Offerings
This license covers financial service activities, including participating in activities related to the issuance and sale of digital currencies and providing investment advice.
Rules for Virtual Asset Services in Argentina
Since March 2024, Argentina has introduced reforms to regulate the activities of Virtual Asset Service Providers. With the enactment of Law No. 27,739, the country aims to curb money laundering and terrorist financing. This law marks a significant shift in how the South American country handles cryptocurrencies.
Key Regulations
Law No. 27,739 sets the foundational guidelines for VASPs in Argentina. Under this law, VASPs must observe strict defences against money laundering and terrorist financing. They are required to establish processes for verifying customer identities and reviewing transactions.
Role of the CNV (National Securities Commission): The Argentine Securities Commission holds the authority to oversee crypto-related activities. The CNV has developed a detailed regulatory framework, ensuring that VASPs meet various compliance measures. Among these responsibilities, the CNV handles the registration and consistent scrutiny of VASPs, keeping a close watch on transaction transparency and security.
Registration Requirements
All VASPs in Argentina must join a specific registry. The necessity to register is emphasized in CNV General Resolution No. 944/2024. This applies to both Argentinian operators and foreign entities connected to Argentinian activities. Registration demands the submission of comprehensive legal and business details, affirming adherence to international standards.
Resolution Stipulations
- Natural and legal operators in the crypto space are mandated to appear in the VASP Registry.
- The requirement extends to non-resident VASPs with associations to Argentina through domains or partnerships.
- Exemptions apply to those with activity levels under 35,000 units of purchase value monthly.
Moreover, Resolution No. 49/2024 by the UIF outlines obligations for VASPs involving reporting duties and measures to thwart financial crimes. These obligations involve knowing your customer procedures, continuous monitoring of transactions, and regular risk assessments.
Compliance and Penalties
The regulations stipulate a 45-day window for VASPs in the country to comply with registration. Failure to adhere to the rules results in penalties. Sanctions range from monetary fines and disqualification lasting up to five years to additional severe consequences.
For transactions conducted within the nation, a risk-based monitoring system is crucial. This approach ensures that VASPs can promptly identify and address suspicious activities. By doing so, VASPs align themselves with standards set by international bodies like the Financial Action Task Force (FATF).
The CNV and the BCRA (Central Bank of Argentina) collaborate to enforce these measures, providing a structured environment for cryptocurrency activities while boosting confidence among participants in Argentina’s crypto market.
Taxation in Argentina
Argentina’s taxation framework for cryptocurrency enterprises has seen significant changes. Understanding these taxes is crucial if you are involved in the cryptocurrency industry in Argentina.
Capital Gains Tax: If you hold cryptocurrency for more than 365 days, any profits are subject to a capital gains tax, which ranges from 15% to 20%. This means that long-term investments in cryptocurrencies can result in a substantial tax obligation.
Value-Added Tax (VAT): Specific services related to cryptocurrencies, like consulting and IT services, incur a VAT of 21%. This tax impacts the cost of doing business in the cryptocurrency sector, especially for service providers.
Corporate Income Tax: Companies operating in the crypto space must pay federal income tax on their net income. The rate varies between 25% to 35%, depending on income brackets. For lower income levels up to USD 15,502.51, the rate is 25%. For incomes between USD 15,502.51 and USD 155,025.11, a fixed amount and a 30% rate on the excess apply. Incomes over USD 155,025.11 face a 35% rate in addition to a substantial fixed amount.
Your strategy should include careful tax planning to comply with regulations and reduce financial risks.
Our Specialists Will Provide the Following Services:
Preliminary analysis of the business model and consultation;
Full support for the establishment of the company;
Assistance in the development of internal policies and procedures;
Full support for obtaining a cryptocurrency license in Argentina;
Submission of all documents and petitions to the supervisory authorities;
Legal address for the company. If necessary, assistance in finding a separate office and hiring a qualified staff;
Payment of all state, notary fees and duties;
Legal and accounting advice.
Cryptocurrency license in Argentina is a quick way to develop your business.
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Common Questions About Securing a Virtual Asset Service Provider License in Argentina
Are Virtual Assets Regulated in Argentina?
Cryptocurrency operations in Argentina are subject to regulations. The enactment of legislation like Law No. 27,739 and General Resolution No. 994/2024 mandates the registration of Virtual Asset Service Providers (VASPs). Moreover, these entities must adhere to guidelines that mitigate risks related to money laundering and terrorist financing.
What Does VASP Mean in the Argentine Context?
In Argentina, a Virtual Asset Service Provider (VASP) comprises businesses and individuals who engage in transactions involving the exchange of virtual and fiat currencies. Their roles might include transferring, storing, and managing virtual currencies, as well as offering related financial services.
Why Obtain a VASP License in Argentina?
Securing a VASP license in Argentina is essential for legally conducting activities related to virtual assets. It ensures that operations align with anti-money laundering and counter-terrorism financing standards. Additionally, holding this license helps in building trust among clients and stakeholders.
How Do You Apply for a VASP License in Argentina?
The process for obtaining a VASP license in Argentina involves several steps:
- Submit an initial application to the CNV.
- Prepare and provide incorporation documents.
- Present financial records and a detailed business plan.
- Demonstrate compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
- Successfully pass the compliance evaluation conducted by the CNV.
Timeline for Acquiring a VASP License in Argentina?
The duration for receiving a VASP license can vary. It may range from a few weeks to several months, heavily depending on the adequacy and precision of submitted documentation, along with the CNV’s processing time.
Consequences for Operating Without a License in Argentina?
Running a virtual asset operation without a proper license can attract strict penalties:
- Issuance of a formal warning
- Publication of violation notices, charged to the offender
- Fines potentially reaching ten times the transaction value
- Additional fines between 15 to 2,500 units
- Suspension from business operations for up to five years
Is There a Public List of Licensed VASPs in Argentina?
A publicly accessible registry of approved VASPs is maintained by the Argentine Securities Commission (CNV). This record offers transparency by listing companies and individuals authorized to conduct virtual asset-related services.