On April 11, the securities regulator, the National Commission of Value (CNV), approved the use of Bitcoin in Argentina. Now that the CNV has approved the regulation of BTC-indexed futures contracts on the Matba Rofex exchange, it can be said that the use of Bitcoin in Argentina has been legalized.
The National Commission of Value Approves Bitcoin Use in Argentina
Futures contracts are significant because without owning the underlying asset, users can use futures contracts to acquire exposure to BTC’s price. With the approval, the contracts can now be traded in Argentine pesos.
This action is a part of the CNV’s strategic agenda for innovation, which intends to respond to the difficulties presented by new technologies in the provision of financial goods. Moreover, this approval intends to encourage regulated firms in the capital market to develop novel and cutting-edge products.
About the Approval
The price of BTC, as provided by various price suppliers and organizations that support the operation of the BTC/ARS pair, will serve as the foundation for the Bitcoin index. Bank transfers will be used to make deposits in Argentine pesos. However, it is crucial to remember that the CNV has no regulatory or control power over these providers.
In this direction, for the provision and use of their payment services in the nation, Matba Rofex S.A. is obliged to make sure that they have a legal contract with a Payment Services Provider (PSP) registered with the Central Bank of the Argentine Republic (BCRA).
Why is this Approval Significant?
The Innovation Hub, a public-private collaboration area created to foster exchanges with regulated businesses and entities with technology projects for financial products and services in the capital market, is where this initiative is a part. The Innovation Hub was launched by the CNV a year ago.
An encouraging move for Argentina’s capital market is the CNV’s approval of Bitcoin index futures contracts. As a result, promoting cutting-edge goods for regulated entities displays the regulator’s readiness to change with the financial industry.
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