In a notable shift, Bitcoin Argentina, a non-government organization, has introduced a draft bill aimed at regulating the cryptocurrency market in Argentina while upholding decentralization and fostering public confidence. Bitcoin Argentina President Ricardo Mihura presented the proposed legal framework during LABITCONF 2023 in Buenos Aires, emphasizing the need to balance regulation to preserve blockchain integrity and address bad actors within the crypto industry.
Previously resistant to regulation, Bitcoin Argentina now contends that responsible regulation is essential to safeguard decentralization and protect the public’s savings and trust. The proposed legal framework categorizes cryptocurrency platforms into three groups based on their approach to property rights: decentralized, locally centralized or open to dialogue with authorities, and globally centralized. While platforms in the latter two categories can operate freely, customers are afforded extensive judicial protection, ensuring the right to seek damages in case of platform failures.
Decentralized platforms, however, would be exempt from judiciary intervention in such cases. Courts would evaluate the degree of decentralization when addressing claims from allegedly affected customers. Mihura asserted that an outright ban on cryptocurrencies is impractical due to the global nature of blockchain, emphasizing the need for a nuanced legal approach.
The proposed bill from Blockchain Argentina arrives ahead of Argentina’s presidential run-off election, occurring amid the country’s inflation crisis, where the annual inflation rate has surged to 121.7%. The bill reflects a proactive effort to establish a regulatory framework that navigates the challenges posed by dishonest actors in the cryptocurrency space while acknowledging the global and decentralized nature of the technology.
