Crypto Compliance in Argentina: What You Need to Know (2025)

Moves to protect investments from high inflation rates and economic instability saw Argentina become an early crypto adopter. It now leads Latin America in crypto use, with the largest crypto adoption rate in the Western Hemisphere by percentage of the population. 

Not only has crypto provided Argentinians with alternative investment options, but stablecoins like Tether have provided much-needed stability to residents. It is no surprise that Argentina has long sought to regulate its growing crypto sector, even before the 2023 election of its famously pro-crypto president, Javier Milei. 

While Argentina does not currently consider crypto to be legal tender (since it is not issued by the government), the country has made recent moves to introduce a legal framework to regulate its crypto boom and better protect users and investors.

In 2024, Argentina enacted Law 27,739 to integrate Virtual Asset Service Providers (VASPs), or PASVs as they are known in Argentina, into its legal and financial framework. This framework obliges VASPs to comply with the country’s AML and KYC processes in a bid to fight money laundering and regulate the sector.

This guide provides an overview of Argentina’s crypto regulatory landscape, how to stay compliant, and what the future could hold for crypto in Argentina.

Is crypto allowed in Argentina?

Yes, Argentina allows the use and trading of crypto assets. However, crypto assets are not recognized as legal tender in Argentina. This is because the National Constitution of Argentina states that the central bank is the only authority capable of issuing legal currency. 

Nevertheless, contracts in Argentina can be settled with crypto assets like Bitcoin. Individuals and businesses alike are also allowed to buy, sell, hold, and offer crypto services in the country.

Suggested read: Digital Identity and Identity Verification in Latin America 

Is crypto regulated in Argentina?

Yes, Argentina now regulates crypto assets. As of 2024, VASPs are obliged to register with the Comisión Nacional de Valores (CNV), Argentina’s financial regulator, to offer crypto services in the country. 

In essence, due to legal reforms under Law 27,739, VASPs must follow AML and CFT regulations that align with the international guidelines of the Financial Action Task Force (FATF). VASPs that are not registered cannot legally operate in Argentina.

The CNV oversees VASP registration and compliance. Not only are VASPs affected by these new reforms, but users are also obliged by Law 27,743 to declare their crypto holdings for tax purposes as part of a simultaneous asset regularization process known as blanqueo (whitening). 

Another key regulatory group in Argentina is the Unidad de Información Financiera (UIF), which is the Ministry of Economy’s intelligence agency. This unit is responsible for conducting investigations to prevent financial crimes, such as money laundering, terrorist financing, or the financing of weapons of mass destruction.

Failure to comply with Argentina’s new regulations can lead to severe penalties, including a ban in operations in the country.

Recent developments

Crypto licensing in Argentina

Law 27,739 was the first major step in recent crypto licensing legislation in Argentina. Enacted in March 2024, this law addresses concerns about money laundering amid the popularity of crypto use in Argentina and establishes the creation of a registry for VASPs overseen by the CNV. 

This law defines virtual assets as: 

“digital representations of value that can be traded and/or transferred digitally and used for payments or investments.” 

However, this excludes currencies issued by Argentina or other jurisdictions. 

Law 27,739 requires VASPs to register with the CNV, defining VASPs as any individual or legal entity involved in the following, either for themselves or for another party:

• exchanging between virtual assets and fiat currencies (Category 1 VASP)
• exchanging between one or multiple types of virtual assets (Category 2 VASP)
• transferring virtual assets (Category 3 VASP)
• having custody of virtual assets or instruments allowing their control (Category 4 VASP)
• administering virtual assets or instruments allowing their control (Category 4 VASP)
• taking part in or providing financial services regarding the sale or offer of virtual assets (Category 5 VASP).

Although this law came into effect in March 2024, there is a phased introduction to compliance to allow parties to adapt. The deadlines are as follows: 

• Individuals: before July 1, 2025
• Legal entities incorporated in Argentina: before August 1, 2025 
• Legal entities incorporated abroad: before September 1, 2025
• Legal entities incorporated abroad that resolve, under the terms of Section 123 of Law No. 19,550, to incorporate a company in Argentina: before September 1, 2025. 

The full regulatory framework will take effect on December 31, 2025.

Argentina’s crypto licensing currently consists of three frameworks based on Law 27,739:

• UIF Resolution No. 49/2024: This legally designates VASPs as UIF reporting entities, which entails obligations including risk management, reporting, transaction monitoring, and following KYC procedures.
• CNV General Resolution No. 994/2024: This requires all VASPs engaged in activities involving Argentina to register with the CNV.
• CNV General Resolution No. 1058/2025: This establishes a regulatory framework for VASPs, introducing categories of VASPs, as well as requirements in areas like registration, net worth, fund segregation, asset custody, cybersecurity, AML/CFT reporting, and advertising.

Registering with the CNV VASP registry

VASPs must join the CNV VASP registry if they wish to operate in Argentina, local or international. 

This includes any VASP that generates more than 20% of its turnover from Argentina as well as any VASP targeting Argentinians through advertising, using an “.ar” domain, or engaging in commercial agreements to facilitate the transfer of funds from Argentinian residents. 

Entities from areas the FATF considers high risk (i.e., on its black and grey lists) cannot register due to high standards of safety for users. After registering, VASPs are also required to file monthly reports to the FIU and implement acceptable AML and KYC procedures, including:

• Screening and verifying client identities
• Reporting on new client registrations
• Conducting risk assessment
• Maintaining detailed records (including transactions, client data, etc.)
• Monitoring transactions and reporting suspicious activity
• Having internal controls.

Suggested read: Understanding the FATF Black and Grey Lists

Applying for a CNV license

VASPs need a CNV license to operate legally in Argentina. This application process can take a matter of weeks or months and consists of: 

1. Filing an application with the CNV (applications to resume on May 26, 2025)  
2. Incorporating a local entity in Argentina
3. Proving compliance with the minimum net worth requirement (ranging from $35,000 to $150,000 depending on VASP category)
4. A sworn statement from the VASP’s authority that they have not been convicted of any offenses related to money laundering
5. Detailing the VASP’s operational structure
6. Demonstrating KYC and AML compliance (such as identifying compliance officers)
7. Certification of functioning cybersecurity systems
8. A CNV review to make sure the applicant adheres to AML/CFT regulations

Blanqueo

Alongside this major regulatory shift, Argentina is targeting previously undeclared assets, including virtual assets, under the blanqueo asset regularization program.  

This gives both individuals and businesses the opportunity to declare any previously undeclared assets, helping to further target money laundering. The final deadline for submitting a sworn declaration of assets, including virtual assets, is May 30, 2025. Failure to do so could lead to fines or legal penalties. 

While Argentina’s pursuit of greater clarity could help increase public trust in crypto and combat money laundering, it also places extra regulatory burdens on VASPs with associated greater costs.

Suggested read: From AI to Fraud Democratization and Real Identity Theft: Fraud Trends 2024-2025

Argentina and the Travel Rule 2025: What businesses need to know

Argentina’s full implementation of the Travel Rule is ongoing. However, Argentina has pledged to align with the requirements of the Travel Rule, and has successfully avoided being placed on the FATF’s “grey list” by demonstrating initiatives to overcome AML deficiencies.

So, what is the Travel Rule and does it apply in Argentina?

In accordance with FATF Recommendation 16, the Travel Rule requires VASPs to collect and share information about the originator and beneficiary of virtual asset transfers. 

VASPs must collect and share the following information for transactions over a certain threshold (normally around $1,000), reporting to the relevant authorities where necessary:

• Originator’s name 
• Originator’s account number for the account used to process the transaction (e.g., wallet address)
• Originator’s physical (geographical) address; national identity number; customer identification number (i.e., not a transaction number) that uniquely identifies the originator to the ordering institution; or date and place of birth
• Beneficiary’s name 
• Beneficiary’s account number for the account used to process the transaction (e.g., wallet address)

The Travel Rule’s main requirements are:

• To conduct due diligence of the counterparty before sharing data
• For the originating VASP:
  • Identify its client (originator)
  • Obtain the necessary information from the originator, retain a record and share the information with the beneficiary VASP after all checks
  • Screen to confirm that the beneficiary is not a sanctioned name
  • Monitor transactions and report when they raise suspicion 
• For the beneficiary VASP:
  • Obtain the necessary information from the originator’s VASP, verify the accuracy and consistency of the necessary information, and retain a record
  • Screen to confirm that the originator is not a sanctioned name
  • Monitor transactions and report when they raise suspicion

Thresholds and reporting in Argentina

While the FATF recommends the Travel Rule to take effect on all virtual asset transfers above $1,000, countries around the world set their own standards. In Argentina, as crypto regulatory compliance is new and ongoing, a specific de minimis threshold for Travel Rule-type processes to apply has yet to be introduced. 

This is because, at present, Argentina has yet to pass an act implementing the Travel Rule. As such, although they align with the Travel Rule, the reporting obligations under Law 27,739 are independent of it.

However, VASPs are still subject to strict reporting obligations. Every month, VASPs must report all transactions involving virtual assets equal to or exceeding six times the minimum wage in Argentina (i.e., 262,432.93 pesos; $1,350). VASPs must also submit detailed personal information about account holders while reporting all client account openings and closures to the FIU.

Penalties for non-compliance

VASPs that do not comply with Argentina’s new crypto regulations could face severe penalties. The CNV has the authority to:

• fine those who fail to adhere to regulations
• pursue legal action against those who fail to adhere to regulations
• revoke licenses from non-compliant entities, banning them from operating in Argentina.

Furthermore, those who do not declare their crypto assets in accordance with the blanqueo initiative could face: 

• tax liability
• fines and interest
• criminal charges. 

Travel Rule compliance solution

One thing is clear about Argentina’s crypto regulatory landscape: it is rapidly evolving to reflect colossal demand. As regulatory burdens and processes are changing, it’s crucial for businesses to follow them if they want to stay ahead of the curve and legally operate in Argentina’s huge market. 

Sumsub offers a Travel Rule compliance solution designed to account for this evolving regulatory landscape. We allow crypto businesses in Argentina to focus on access to the most enthusiastic crypto adopters in the Western Hemisphere, leaving the compliance systems to us. 

Challenges in crypto compliance in Argentina

As Argentina’s crypto regulatory landscape changes, there are associated challenges in ensuring businesses stay compliant and maintain access to this huge market. This can lead to extra costs in terms of both time and money.

While many in the country see the recent introductions of crypto regulations as going against what made crypto popular in Argentina in the first place, maintaining trust is a further challenge for crypto.

There are also those who may view these new regulations as overly restrictive, which could encourage some users to avoid VASPs altogether, and pose further difficulties for the UIF. However, the recent $LIBRA memecoin scandal, which wiped out $4.4 billion in investor funds, highlights the urgent need for regulation that Argentina is pursuing.

The future of crypto in Argentina

Argentina’s regulations could not only lead to more growth in the country’s crypto industry, but also the application of blockchain technologies in public services. Considering Argentina’s unique economic landscape, this puts Argentina in an exciting position of innovation that could see crypto used in novel ways.

For example, Argentina has approved the tokenization of goods, allowing for blockchain-based certificates representing deposits. The City of Buenos Aires also now allows the use of crypto assets in corporate capital contributions.

However, with greater growth and more use comes a greater risk of fraud. Read our 2025 Crypto Report to find out how crypto and regulations are evolving and for exclusive insights into the fight against fraud.

FAQ

• Do I need to declare crypto in Argentina?

  Yes, virtual asset holdings and transactions need to be declared in Argentina. This is because virtual assets may be subject to taxes like income tax, capital gains tax, and personal assets tax. Failure to declare may lead to penalties or even legal action.

• What is the Travel Rule in Argentina?

  Argentina has not yet implemented the Travel Rule. In general, the Travel Rule requires Virtual Asset Service Providers (VASPs) to collect and share data about transfers of virtual assets, such as cryptocurrencies, when they exceed a set value (often around $1,000). Data collected under the Travel Rule includes information about both the sender and recipient, which is shared with financial regulators to prevent illicit activities.

• What does “blanqueo” mean in Argentina?

  “Blanqueo” (which can be translated as “whitening”) refers to the Régimen de Regularización de Activos. This is an asset regularization program designed to boost tax compliance in Argentina. It gives individuals and businesses the opportunity to declare previously undisclosed assets, including crypto assets.