Currency regulatory framework. Following the demise of major cryptocurrency exchange FTX, institutions like Argentine securities regulator CNV are reportedly considering including proof of solvency requirements for Argentine exchanges and custodians. doing.
Cryptocurrency exchanges may be required to complete proof of solvency procedures under Argentine law
We are preparing to start strict regulations for complying with domestic operations. According to Bloomberg report, the National Securities Regulatory Authority (CNV) is considering introducing proof of solvency requirements for third-party cryptocurrency deposit institutions.
According to a statement from CNV President Sebastian Negri, the regulation they are working on will focus more on exchange activity than on the classification of cryptocurrencies and tokens. Negri also explained that the regulatory framework will be phased in, but did not confirm the inclusion of proof of solvency requirements.
Negri revealed that all measures will be taken in collaboration with Argentinian cryptocurrency companies. He declared:
We will form a working group with industry to agree on new regulatory parameters. Estimate.
Proof of Solvency
A proof of solvency report registers whether an exchange or virtual currency company holds the amount of virtual currency it claims to own. To do. blockchain, to prove that the funds are sufficient to cover the debt the company presents to its customers.
The possibility of this type of measure being included in the upcoming Argentine cryptocurrency law comes as a result of his FTX, formerly one of the largest cryptocurrency exchanges, which filed for bankruptcy protection last year. It is intended to avoid a situation like demise. Leave customers without access to funds.
After the event, other cryptocurrency exchanges were ready to voluntarily implement similar initiatives. This is the case for Binance, Crypto.com, and Kucoin, who were preparing for the pre-certification process. However, Mazars, the company responsible for these certifications, abandoned such efforts in December, indicating it was “pausing work with all cryptocurrency clients worldwide.”
Some domestic exchanges, such as Lemon Cash, have already said that they will release this information soon. “The community has lost faith in cryptocurrency and we have to regain it,” declared Francisco Ladino, blockchain manager at LemonCash.
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