Argentina’s financial watchdog, the National Securities Commission (CNV), has decided against intervening in the LIBRA case. Instead, the agency is moving forward with plans for stricter regulation of Virtual Asset Providers (PSAV).
This decision signals a move toward tighter oversight of cryptocurrency operations nationwide. Sources indicate that the CNV, headed by Roberto Silva, is finalizing new, more detailed regulations. These rules aim to ensure market stability and protect investors.
New Crypto Rules Target Companies, Says Argentina CNV
CNV stated that the coming regulations will target companies that facilitate crypto operations, not individual investors. However, their reluctance to step into the LIBRA issue comes from the lack of legal rules covering token promotions on decentralized platforms.
Related: Argentina’s Crypto President in Trouble: Milei Charged Over LIBRA Token Fail
“The $LIBRA token, at the time of its launch, was not found in the main wallets registered as PSAV in Argentina, such as Lemon, and could only be purchased on decentralized platforms or wallets (DEX) that operate directly on the Solana blockchain,” explained sources to the matter.
Critics Slam Argentina’s Regulators For ‘Ignoring’ LIBRA Losses
Critics argue that this regulatory hole allows fraudulent schemes to thrive. Nic Puckrin of Coin Bureau criticized regulators for not taking responsibility for the scandal and other pump-and-dump scams. Ian Balina of Token Metrics even questioned the integrity of Argentina’s political-crypto ties.
The LIBRA scandal saw its market cap skyrocket to $4.56 billion before plummeting to $257 million. This crash triggered impeachment discussions and caused investor losses estimated at $100 million.
Related: Crypto Whale’s $96.87M $LIBRA Gains & $TRUMP’s 5.43% Market Dip: Price Analysis
Investigations further revealed payments to Karina Milei, the president’s sister, for favorable decisions. This has intensified scrutiny of the government’s inner circle.
Argentine lawyers have now filed a complaint with the DOJ & FBI over LIBRA’s collapse, urging an investigation into President Milei. While CNV has chosen to not intervene directly, growing political and public pressure might soon force a regulatory shift. As regulators struggle to address the crisis, this incident highlights clear weaknesses in the nation’s cryptocurrency oversight.
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