Argentina Proposes Sweeping Deregulation Bill to Modernize Capital Markets With Crypto and Blockchain
Argentina is on the verge of modernizing its financial market rules with a deregulation bill that puts digital assets and decentralized technologies at the forefront. Proposed by Deregulation Minister Federico Sturzenegger, the draft bill introduces significant changes to include digital assets in national financial markets.
The first key proposal allows investment funds to invest in digital assets, provided it aligns with the fund’s investment policy. This could open up billions in demand for cryptocurrencies, according to early estimates. An undisclosed source told Clarin that “crypto-assets are investment assets” and funds should be allowed to invest subject to regulations.
The bill also approves the full tokenization of all negotiable securities, including issuance, custody, transfer, and sale using decentralized technologies. This aims to modernize stock and securities markets by enabling quicker, cheaper, and more efficient operations.
Digital assets such as bitcoin can be used as collateral for loans, allowing crypto natives to leverage their holdings within the traditional system. Smart contracts are granted full legal recognition, enabling traditional contracts like rent agreements and mortgages to be executed on blockchain, with automatic payments and foreclosures without judicial intervention.
While the draft may change before presentation to Congress, it signals a clear intent to embrace innovation. The Argentine Securities and Exchange Commission (CNV) also recently recognized cryptocurrencies as part of qualified investors’ net worth, further integrating digital assets into the regulatory framework.