In the realm of cryptocurrency governance, Bitcoin Argentina, a non-governmental entity, has unveiled a legislative proposal aimed at orchestrating the regulatory landscape while upholding the tenets of decentralization and fortifying public confidence.
The articulated legal paradigm, presented by the luminary Ricardo Mihura, President of Bitcoin Argentina, during the LABITCONF 2023 in Buenos Aires on Nov. 10, marks a departure from the organization’s prior stance of eschewing regulatory interventions. However, the new narrative contends that regulation is imperative, not solely for the preservation of the blockchain but also for holding nefarious actors accountable within the ambit of the law.
Mihura expounded, stating, “We have consistently rebuffed endeavors to regulate the crypto-economic sphere. Nevertheless, on this occasion, we’ve undertaken the mission of delivering an affirmative response, with twin objectives: the safeguarding of decentralization and the assurance of savings and public trust.” He further emphasized the necessity of confronting the proliferation of unscrupulous entities and undertakings that exploit the blockchain nomenclature.
The inaugural segment of the proposed legislative framework meticulously categorizes cryptocurrency platforms and service providers into three distinct classifications, delineating property rights—decentralized, locally centralized or amenable to dialogues with authorities, and globally centralized.
Platforms falling within the purview of either centralized category are accorded the liberty to function unrestrictedly. However, their patrons are endowed with “the most comprehensive judicial safeguard,” ensuring the right to seek reparations in the event of a corporate demise.
It is discerned that the Argentine judiciary shall abstain from intervening in the inadequacies of decentralized platforms. The determination of a platform’s sufficient decentralization, in cases of claims brought forth by purportedly aggrieved users, is entrusted to the courts.
Mihura underscored the impracticality of an outright ban on cryptocurrencies, a recourse attempted by certain governments, given the pervasive nature of the blockchain. He asserted, “Not even the United States can efficaciously proscribe the operations of the unlicensed cryptoeconomy… Argentina lacks the means to bar its residents from participating in global environments. Hence, we posit that advocating a top-down prohibition is futile, and we opt to propose the optimum that the law can proffer to its denizens.”
“This encompasses those directly culpable and all entities profiting in the marketing continuum of a deception, up to and including the ultimate victim,” added Mihura.
The proposed legislation from Blockchain Argentina materializes a week before Argentina’s presidential runoff election between Sergio Massa, the nation’s Minister of Economy, and Javier Milei, an economist-cum-politician advocating for the dissolution of Argentina’s central bank and the adoption of the United States dollar.
Argentina presently grapples with an inflationary crisis, registering the world’s fourth-highest annual inflation rate at 121.7% over the past 12 months.
