The challenge is no longer just to grow, but to grow under a regulatory framework that does not stifle innovation. Amid new regulations, leaders of Argentina’s cryptocurrency ecosystem warn the country faces a crossroads: Well-designed regulations could unify Argentina hub But excessive regulation and taxes could slow that development and suffocate the companies that promote it.
The sector’s growth over the past decade was one of the highlights at the Latin American Bitcoin & Blockchain Conference (LABITCONF), the region’s longest-running sector event, held in Buenos Aires last Friday and Saturday. Ricardo Mifra, a tax lawyer and partner at RDA Legal Abogados, recalled that “the cryptocurrency ecosystem has grown very strongly in Argentina over the past 10 years.” He further added, “When the CNV began regulating PSAV last year, many exchanges (digital platforms where virtual currencies are bought, sold, and exchanged) and companies had already operated with great courage and ingenuity, gaining the trust of the public, users, and customers.”
This expansion has made Argentina one of the countries with the highest number of cryptocurrency adopters in the world. Andres Ondara, general manager of Binance Argentina, assured LA NACION: “We see continued growth in the industry, but we also see great growth potential.” Likewise, Julián Colombo, General Director of Bitzo Argentina, emphasized that in parallel with the growth: hub Or the Global Cryptocurrency Regulation Center. People began trying to find common standards, but this “created disagreements with traditional actors in each country, such as banks and insurance companies.”
Experts agreed that developments in this field repeat common patterns with other major technological changes. Pablo Casadio, co-founder and CFO of Bit2Me, compared this process to what happened with solar energy and the internet, saying, “There came a stage of exploration where the pioneers who first paved the way appeared. , many of us have moved on to the colonization stage, which is characterized by the emergence of exchanges that provide security and structure to the ecosystem. And finally there is the institutionalization stage, which is where we are now, and where we have the ‘big guys.’ Funds, governments, and corporations start coming in and the market stops being pure B2C and becomes B2B2C. ”
After this stage of maturity, today’s ecosystems are facing a regulatory tipping point. Experts agree that the industry is at a critical juncture. Although Argentina has made progress ahead of other countries, Regulators still struggle to understand the concept of decentralization. “We are in an era where regulation can be beneficial and can be the beginning of something very bad,” Colombo summed up. “Success or failure will depend on how flexible and agile the authorities are,” he added.
Furthermore, the panorama is traversed by uncertainty. Mr. Sanfura said, “Europe was the country with the most advanced regulations, and the MICA law has already been in effect for a year, but I don’t know which way everything will turn“As he warned, Current frameworks tend to have more control: “They are exchange He added that previously anyone could register an exchange, but the latest regulatory demands “nowadays require more requirements in Argentina and limit the emergence of new platforms.”
Despite these tensions, some stakeholders see positive signs in the institutionalization process. Colombo asserted that “Today, the system is institutionalized and we are no longer the insane subjects on the fringes of the system that they feared.” But he warned regulators were at a critical moment. “Either you work with us and make sure regulations help business, or you take a different perspective. Think of yourself as another collection agency.“From a tax perspective, the situation became even more unfavorable, he added. “the exchange They pay taxes on their checks, which they didn’t have to expect two years ago, and even the banks aren’t paying them. ”
Reducing the tax burden and calling for rules more tailored to the sector were common themes among speakers. “We need more tax and regulatory cuts to go along with this system,” Casadio said, stressing the importance of distinguishing between different types of digital assets. “Regulating cryptocurrencies is not the same as regulating cryptocurrencies.” stable coin Or Bitcoin. We must help, we have a unique opportunity to make Argentina a nation. hub Global Crypto”.
The most optimistic vision points to regulation that accompanies innovation, bringing predictability. Ondara argued that rules must be dynamic and flexible. “This generates a regulated and secure ecosystem. So industry players know that if they are going to develop a product, there is regulation behind it and that support can even continue to spawn other developments.”
Experts argued that the focus should be on promoting decentralization rather than managing it. “But the regulators are not thinking about that at all,” Mihra warned. “They like to talk exchange And we think that they are the nexus of our relationship with this phenomenon, an ecosystem that we don’t fully understand. ”
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