- Investors can now access cryptocurrencies through local markets without using foreign exchanges, enhancing market liquidity and transparency.
- Tax benefits for local cryptocurrency investment funds exempt from income tax, increasing attractiveness to domestic and international investors.
Argentina’s National Securities Commission (CNV) has recently updated its investment framework to include Bitcoin (BTC) and other cryptocurrencies within Open Common Investment Funds (FCI).
This regulatory change, announced through CNV’s official site, marks a significant shift towards integrating digital assets into traditional investment portfolios, reflecting a broader trend of crypto acceptance in the global financial landscape.
The inclusion of cryptocurrencies as viable investment options within FCIs was introduced after a six-year deliberation and public consultation period following the enactment of Law N° 27.440. This legislative move paves the way for the creation of Argentine Deposit Certificates (CEDEAR) and Virtual Asset Common Investment Funds, which include commodities and passively managed indices.
According to Roberto E. Silva, the president of the CNV, this development will allow for the trading of Bitcoin and Ethereum among other assets on the capital market. Silva highlighted that the new regulation would enable investors to engage with spot ETFs that mirror the pricing of various global indices, including gold and cryptocurrencies.
This regulatory update aims to broaden the range of FCI alternatives, significantly enhancing the liquidity and transparency of market operations.
It removes previous barriers faced by those looking to invest in cryptocurrencies, who previously had to resort to exchanges or peer-to-peer markets. Now, investors can access these assets through the capital market via investment funds and brokerage services.
The initiative is aligned with international market trends and is designed to increase the offering of investment alternatives in Argentina. By integrating cryptocurrencies into more conventional investment avenues, the CNV is facilitating easier access for traditional investors to the digital asset space, potentially increasing market volume and depth.
Public Affairs leader at Bitso Argentina, Carlos Peralta, remarked that this new pathway is beneficial for traditional investors looking to enter the crypto market.
This regulation could significantly boost the adoption of crypto assets, attracting more institutional and traditional investors to the crypto space in Argentina, a country that leads in crypto adoption in Latin America.
This development is great news for the crypto industry, as it can stimulate the adoption of these assets by attracting traditional investors and expanding the ecosystem gradually and safely. In addition, it complements recent decisions, such as the inclusion of crypto in corporate assets, the creation of the PSAV (Virtual Asset Service Providers) registry, and the incorporation of crypto assets in money laundering processes. – Carlos Peralta, Head of Public Affairs at Bitso.
Furthermore, tax advantages are also a significant aspect of this new regulation. Martín Caranta, a partner at Lisicki, Litvin & Associates, noted that while foreign investment funds were previously taxed, now, gains from local FCI investments in cryptocurrencies would be exempt, enhancing the attractiveness of these investment vehicles.
This strategic integration by the CNV is expected to foster a more robust and diverse financial market in Argentina, providing a secure and regulated environment for investors looking to explore the growing potential of cryptocurrencies.
