The non-governmental organization Bitcoin Argentina has introduced a draft bill proposing regulations for the cryptocurrency market. The aim is to ensure the preservation of decentralization and enhance public trust.
Bitcoin Argentina’s president, Ricardo Mihura, presented the proposed legal framework at LABITCONF 2023 in Buenos Aires on November 10. Despite the organization’s previous resistance to cryptocurrency regulation, Mihura now argues that it is necessary not only to safeguard blockchain but also to hold wrongdoers accountable under the full extent of the law.
“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 stated.
The initial segment of the legal framework concentrates on categorizing cryptocurrency platforms and service providers into three distinct groups to establish property rights — decentralized, locally centralized or amenable to engaging with authorities, and globally centralized.
Platforms falling within either of the centralized categories would have the liberty to operate, but their customers would be endowed with “the most extensive judicial protection,” ensuring the right to seek damages in the event of a company’s collapse.
It is clarified that Argentina’s judiciary would refrain from intervening in the failures of decentralized platforms.
When adjudicating claims presented by purportedly affected customers, courts will determine whether a cryptocurrency platform exhibits sufficient decentralization or not.
Mihura emphasized that attempting an outright prohibition on cryptocurrencies, as some governments have done, would prove ineffective due to the global nature of blockchain. He stated, “This includes those directly responsible and all those who profit in the marketing chain of a fraud, until the final victim.”
Blockchain Argentina’s proposed bill emerges one week before Argentina’s presidential run-off election, pitting Sergio Massa, the country’s economy minister, against Javier Milei, an economist turned politician advocating for the abolishment of Argentina’s central bank and the adoption of the United States dollar.
Argentina is currently grappling with an inflation crisis, marking the fourth-highest annual inflation rate globally at 121.7% over the past 12 months.