• Regulators in Argentina are mulling the inclusion of stringent requirements in their next cryptocurrency regulatory framework.
• This regulation that is currently being worked on will be focused more on the activity of exchanges and less on the classification of crypto and tokens.
• The possible inclusion of this kind of measure in the upcoming Argentine crypto law would have the objective of avoiding a situation like the demise of FTX.

Argentina Mulls Inclusion Of Proof-Of-Solvency Requirements In Crypto Regulation

Regulators in Argentina are mulling the inclusion of stringent requirements in their next cryptocurrency regulatory framework. The regulation that is currently being worked on will be focused more on the activity of exchanges and less on the classification of crypto and tokens.

What Are Proof-Of-Solvency Requirements?

Proof-of-solvency reports register whether an exchange or crypto company has the amount of cryptocurrency it claims to have, while looking directly at its funds in the blockchain, certifying that funds are sufficient to cover liabilities presented to customers.

Objective Of Introducing Requirements

The possible inclusion of this kind of measure in the upcoming Argentine crypto law would have the objective of avoiding a situation like the demise of FTX, formerly one of the biggest cryptocurrency exchanges. After this event, other cryptocurrency exchanges made preparations for carrying out similar initiatives voluntarily.

CNV’s Working Group With Industry

CNV president Sebastian Negri declared that all measures will be taken in a joint effort with crypto companies in Argentina, creating a working group with them to agree on new regulatory parameters which include companies that meet asset and solvency requirements to support risks assumed.

Voluntary Measures By Crypto Exchanges

Binance, Crypto.com, and Kucoin were preparing proof-of-reserves procedures voluntarily after FTX filed for bankruptcy protection last year leaving customers without access to their funds.