Argentina recently implemented the Virtual Asset Service Providers (VASP) Registry, causing disappointment among Bitcoin enthusiasts who had hoped the country would follow El Salvador's lead in adopting Bitcoin.
The new law requires platforms and individuals who buy, sell, send or trade cryptocurrencies to go through a registration process. Although the regulation appears to be a holdover from the previous government, its introduction under President Javier Milei disappointed those who dreamed of another Bitcoin-friendly leader in Latin America.
Max Kieser, a longtime Bitcoin advocate and advisor to El Salvador President Nayib Bukele, expressed his disappointment on Twitter. He criticized Milei for not taking the time to understand Bitcoin and predicted that he would face consequences. It is worth remembering that El Salvador, under Bukele's leadership, became the first country in the world to make Bitcoin its official currency in 2021.
The new regulation seems to have had an immediate effect. Users of payment app Strike reported that the platform informed them that the Global Send function between Argentina and the US will no longer be supported.
Milei, a libertarian who previously praised Bitcoin as a safe haven against central banking and inflation, took office in December 2023 amid triple-digit annual inflation. So far he has had some success in reducing the size and scope of government. This year, Argentina posted a monthly budget surplus for the first time since 2011. The monthly inflation rate, which was 20.6% in January and 25.5% the previous month, fell to 13.2% in February.
*This is not investment advice.