Bitcoin Argentina, a non-government organization dedicated to promoting crypto, has presented a draft bill aimed at regulating the cryptocurrency market in a manner that ensures decentralization and enhances public trust.
The proposal was introduced by Bitcoin Argentina’s president, Ricardo Mihura, during the LABITCONF 2023 event held in Buenos Aires, Argentina’s capital, on November 10.
The organization had previously opposed the idea of regulating the industry but now believes it is necessary to hold bad actors accountable and safeguard the blockchain.
“We have always rejected attempts to regulate the crypto economy, but this time we set ourselves the goal of giving a positive response, with only two purposes: preserving decentralization and protecting savings and public trust,” Mihura said.
He further emphasized the need to address dishonest actors and projects operating under the blockchain brand.
The draft bill’s first article focuses on categorizing cryptocurrency platforms and service providers into three groups based on their approach to property rights: decentralized, local centralized or willing to engage in dialogue with authorities, and global centralized.
While platforms falling under the centralized categories would be allowed to operate freely, the proposed legislation ensures that customers have the right to broad judicial protection and can claim damages in the event of a company’s failure.
In contrast, decentralized platforms would not be subject to intervention by Argentine courts.
Bitcoin Argentina Says Outright Crypto Ban is Ineffective
Mihura highlighted the ineffectiveness of outright bans on cryptocurrencies, emphasizing the global nature of blockchain technology.
“Not even the United States can effectively prohibit the operation of the unlicensed cryptoeconomy […] Argentina has no possibility of prohibiting its residents from operating in global environments.”
Given these challenges, Bitcoin Argentina proposed a regulatory approach that provides the best possible legal framework for its citizens.
The draft bill also aims to hold all parties involved in fraudulent activities accountable, from the direct perpetrators to those profiting from fraudulent schemes. Mihura emphasized the need to protect victims throughout the entire marketing chain of fraud.
The timing of Blockchain Argentina’s proposed bill coincides with Argentina’s upcoming presidential run-off.
The election is between Sergio Massa, the country’s economy minister, and Javier Milei, an economist turned politician advocating for the abolition of Argentina’s central bank and the adoption of the United States dollar.
Argentina is currently grappling with a severe inflation crisis, with the country recording the fourth-highest annual inflation rate in the world at 121.7% over the past 12 months.
Meanwhile, the country has been one of the fastest-growing cryptocurrency markets.
According to research from GWI, Argentina has one of the highest ownership rates of digital assets at 23.5%, only second to Turkey at 27.1%.