The notion that regulation of the cryptocurrency industry was necessary was previously rejected by the group “Bitcoin Argentina.”
Non-governmental entity(Bitcoin Argentina) put forth a bill that would regulate the cryptocurrency market in a way that maintains decentralisation and boosts public confidence.
Ricardo Mihura, the president of Bitcoin Argentina, presented the proposed legal framework on November 10 at LABITCONF 2023 in Buenos Aires, the capital of Argentina. Previously, Bitcoin Argentina rejected the notion that regulation of the sector was necessary. Advocates of Bitcoin, however, now contend that in addition to protecting blockchain technology, it is imperative that criminals be prosecuted to the fullest extent of the law.
“We have always rejected attempts to regulate the crypto economy, but this time we set ourselves the goal of giving a positive response, with only two purposes: preserving decentralization and protecting savings and public trust.” Mihura added:
“We cannot close our eyes to the number of dishonest actors and projects that circulate with the blockchain brand.”
In order to determine property rights, the first article of the legal framework divides cryptocurrency platforms and service providers into three groups: decentralised, local centralised or open to communication with authorities, and global centralised.
One of the two centralised categories’ platforms would be free to operate, but its users would have “the broadest possible judicial protection,” which would ensure that they could sue for damages in the event that the company failed.
It is acknowledged that the judiciary in Argentina will refrain from addressing issues arising from decentralised platforms.
While handling lawsuits from purportedly harmed consumers, courts will determine whether or not a cryptocurrency platform is sufficiently decentralised.
The global nature of blockchain, Mihura emphasised, would make it impossible to implement an outright ban on cryptocurrencies, as some governments have attempted to do:
“Not even the United States can effectively prohibit the operation of the unlicensed cryptoeconomy […] Argentina has no possibility of prohibiting its residents from operating in global environments [so] we believe that it does not make sense to propose a top-down ban and we choose to propose the best that the law can offer to its citizens.”
“This comprises the individuals who are directly accountable as well as everyone who gains from a scam’s marketing chain, right up until the last victim,” Mihura continued.
Bitcoin The proposed bill in Argentina comes one week before the country’s run-off election for president, which pits Javier Milei, a former economist turned politician, against Sergio Massa, the minister of economics. Milei wants to replace Argentina’s central bank with the US dollar.
Right now, Argentina is dealing with a severe inflation problem. At 121.7%, the nation’s annual inflation rate over the past 12 months ranks fourth globally.
Bitcoiners present a draught law in Argentina to protect decentralisation and blockchain technology.
