- The country introduced new legislation in March to comply with the Financial Action Task Force requirements.
- Bybit’s VASP registration is part of Argentina’s broader efforts to regulate the crypto market, which is under increasing scrutiny from regulators.
Cryptocurrency exchange Bybit has obtained registration as a Virtual Asset Service Provider (VASP) and card operator in Argentina, Cointelegraph reported. This move comes as Argentina tightens its crypto regulations, driven by domestic economic challenges and international pressure.
Bybit, the second-largest crypto exchange by volume, entered the Argentine market in June 2022. The company’s decision to seek VASP registration aligns with Argentina’s recent efforts to regulate the crypto market.
In March, Argentina introduced legislation to comply with the Financial Action Task Force (FATF) requirements, which aim to prevent money laundering and terrorist financing. Bybit’s registration was approved by the Financial Information Unit (FIU), Argentina’s financial intelligence agency tasked with enforcing these regulations.
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Defying Argentina’s Economic Turmoil
Bybit, the second-largest crypto exchange by volume, entered the Argentine market in June 2022. The company’s decision to seek VASP registration aligns with Argentina’s recent efforts to regulate the crypto market.
While Bybit has successfully solidified its position in Argentina, it faces regulatory hurdles in other markets. The company halted operations in France at the beginning of August after being listed on the French financial regulator’s blacklist for unregistered operators. Similarly, Bybit withdrew from Canada in May 2023 due to new regulatory requirements.
To address this growing trend, Argentina’s government passed legislation in July that introduces tax amnesty for up to $100,000, including registered crypto assets. The General Inspectorate of Justice also approved the use of cryptocurrency in registered capital, further integrating digital assets into the country’s financial system.
Despite these advances, regulatory pressure remains. The FATF has scrutinized Argentina, prompting the government to implement measures to regulate the crypto market more effectively. Bybit’s VASP registration is a direct result of these regulatory efforts, positioning the exchange to navigate Argentina’s evolving financial landscape successfully.
