According to CoinDesk, Argentina has implemented a Registry of Virtual Asset Service Providers (VASP), drawing criticism from those who hoped the country would follow El Salvador's Bitcoin-friendly approach. The new law requires platforms and individuals involved in purchasing, selling, sending, or trading cryptocurrencies to undergo a registration process. The regulation, which was left over from the previous government, has now become law under President Javier Milei, disappointing those who expected another Bitcoin-friendly leader in Latin America.
Longtime Bitcoin advocate Max Keiser, who is also an advisor to El Salvador President Nayib Bukele, criticized Milei's decision on Twitter, stating that he never took the time to understand Bitcoin and would now suffer the consequences. In 2021, El Salvador became the first nation to make Bitcoin legal tender under Bukele's leadership. The new regulation in Argentina has already had an impact, with users of payment app Strike reporting that the Send Globally function between Argentina and the U.S. will no longer be supported. CoinDesk has reached out to Strike for comment.
President Milei, a libertarian who previously praised Bitcoin as a safe haven against central banking and inflation, took office in December 2023 amid triple-digit annual inflation. Since then, he has had some success in reducing the size and scope of the government, with Argentina posting its first monthly budget surplus since 2011 this year. The monthly inflation rate dropped to 13.2% in February from 20.6% in January and 25.5% the month before. However, not everyone views the new VASP law negatively. An Argentina resident stated that the new regulation is necessary for the country to gain more access to foreign investment.