Argentina can be a champion in the Bitcoin market, but with clear rules

If Argentina were to establish a legal framework for operations with bitcoin (BTC) and cryptocurrencies within the territory, the country could become a global reference for the ecosystem, based on the fact that, in that nation, there is a high level of adoption of crypto assets.

This conclusion was reached by the executive directors of the Belo and Lemon cryptocurrency platforms, Marcelo Cavazzoli and Manuel Beaudroit; together with Ripio’s Business Director, Juan José Méndez, during his participation on June 22 in a panel of the Modular Summit 2023which was held in Buenos Aires, Argentina.

During the talk, focused on the adoption of cryptocurrencies on Argentine soil, the CEO of Lemon, Marcelo Cavazzoli, stated that when there are clear regulations for the industry, the raising of capital “to build and innovate” is facilitated.

Cavazzoli argues that a basic regulatory framework “can provide guarantees” for participants in the cryptocurrency industry in Argentina.

In his opinion, clear rules would make the country “world champion”, as it currently is in professional football, but in the cryptocurrency business.

“The innovation of the bitcoin ecosystem is more viable in Argentina”

Manuel Beaudroit, CEO of Belo, shares the idea that in Argentina rules must be established for the market. This, based on the fact that in that nation there are people “who already understand how cryptocurrencies work.”

Although he recalled that, even with the lack of regulations, the innovation of the bitcoin ecosystem It is more viable on Argentine soil than in other countries They have established laws. “Because if a regulation doesn’t promote innovation and competition, it’s a shot in the foot,” he reflected.

In Argentina, the regulation of the cryptocurrency ecosystem is not yet clear. There are some regulations for these businesses, but from the Legislative a law focused on these assets has not yet been issued and its ecosystem.

So far, the only thing under discussion is a modification to the Money Laundering Law, which establishes that all crypto asset service providers become obligated subjects to register with the government Argentine, while fiscal control is exercised over the ecosystem.

Like the previous one, many of the regulations in force in Argentina have been contrary to adoption. Recently, in May, the Central Bank of the Argentine Republic prohibited digital wallets in that country from offering bitcoin and other cryptocurrencies to their clients, as reported by this outlet.

This decision was widely criticized by the Argentine bitcoin community, who expressed that the measure “condemns the South American country to backwardness.”

In this sense, Juan José Méndez, Ripio’s business director, opted for “intelligent regulation”. For that reason, he recalled that this company has spoken with various Argentine regulatorsarguing before them that they work “from transparency.”

“A market that already understands cryptocurrencies”

Marcelo Cavazzoli, the CEO of Lemon, stated that Argentina is one of the countries where cryptocurrencies are used the most. He counted no less than five million people who hold some cryptoactive. That’s about 12% of the country’s total population.

He also said that 1 in 5 working Argentines have cryptocurrencies. “And that is a huge advantage. It is a market that already understands cryptocurrencies,” Cavazzoli specified.

What this specialist says makes sense if one considers that Argentina currently holds the 13th position in the global ranking of adoption carried out by the blockchain analysis firm, Chainalysis.

To this is added that the South American country has received more than USD 100 billion in cryptocurrencies in one year, being the second Latin American country with the highest reported crypto asset adoption.

In a similar opinion to Cavazzoli’s, Manuel Beaudroit, CEO of Belo, assured that the market in general has changed. And, in this sense, in Argentina “there is a lot of experimentation, with many companies and projects” related to crypto assets that, he maintains, “are not in other places.”

According to Beaudroit, the segment freelancer (remote worker), which is “the new workforce”, can become a group that help break the non-adoption barrier of cryptocurrencies. The latter, because “they are people who already understand how the world of crypto assets works.”