NGO Bitcoin Argentina has presented a draft bill proposing to regulate the cryptocurrency market in a way that maintains decentralization and enhances public trust.
Bitcoin Argentina President Ricardo Mihura presented the proposed legal framework at LABITCONF 2023 in the Argentine capital Buenos Aires on November 10. Bitcoin Argentina has previously dismissed the idea that the industry needs regulation. However, Bitcoin advocates now believe that it is not only necessary to protect the blockchain, but also to hold bad actors accountable to the fullest extent of the law.
“We have always resisted attempts to regulate the crypto-economy, but this time we have set ourselves the goal of responding positively, with only two goals: to maintain decentralization and to protect savings and public trust.” Sanhula added:
“We cannot turn a blind eye to the number of dishonest actors and projects spreading blockchain brands.”
The first focus of the legal framework is to classify cryptocurrency platforms and service providers into three categories to determine property rights – decentralized, locally centralized or willing to dialogue with authorities, and global centralized.
Platforms that fall into one of two centralized categories will be allowed to operate freely, but their customers will receive the “widest possible judicial protection”, guaranteeing the right to claim losses if a company fails.
It is understood that the Argentine judicial department will not intervene in the failure of decentralized platforms.
Courts will decide whether cryptocurrency platforms are decentralized enough when resolving claims brought by allegedly injured customers.
related: Argentina’s central bank suspends use of cryptocurrencies by payment apps
Mihura emphasized that an outright ban on cryptocurrencies (as some governments have attempted to do) simply won’t work given the global nature of blockchain:
“Even the United States cannot effectively prohibit the operation of the permissionless crypto-economy (…) Argentina cannot prohibit its residents from operating in a global environment (therefore) we believe that proposing a top-down crypto-economy is a meaningless ban, and we Choose to propose the best advice the law can offer citizens.”
“This includes those directly responsible and all those who profited from the fraudulent marketing chain, right up to the final victim,” Mihura added.
The bill proposed by Blockchain Argentina comes a week before Argentina’s presidential run-off election, which pits the country’s Economy Minister Sergio Massa and Javier Milei, an economist A family-turned-politician who wants to abolish Argentina’s central bank and adopt the U.S. dollar.
Argentina is currently dealing with an inflation crisis. The country’s annual inflation rate reached 121.7% over the past 12 months, ranking fourth in the world.
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