New Regulations on Virtual Asset Service Providers Implemented by CNV

Argentina’s financial landscape is undergoing a transformation with the introduction of the new General Resolution No. 1058/2025 by the Argentine Securities and Exchange Commission, known as CNV. This resolution aims to regulate Virtual Asset Service Providers (PSAVs) operating within the country. According to the resolution, a PSAV refers to any individual or entity that conducts business involving the exchange, transfer, custody, or administration of virtual assets, as well as providing financial services related to the offering or sale of these assets.

One of the central features of this resolution is the requirement for all individuals or entities, whether domestic or foreign, to register with the CNV’s PSAV Registry before initiating any operations within Argentina. Foreign entities must meet specific criteria to operate in the country, such as using “.ar” domains, targeting advertising towards Argentine residents, or engaging in local commercial agreements. However, certain entities are exempt from being classified as PSAVs, including individuals operating for personal use, those accepting virtual assets as payment for goods or services, and providers of self-custody wallets. It is also noted that decentralized protocols without identifiable service providers do not fall under the PSAV classification.

Foreign entities not registered as PSAVs may still sponsor events in Argentina under certain conditions, which include disclosing their non-registration status and refraining from offering services or soliciting investments. Failure to comply with registration requirements or engaging in PSAV activities without proper authorization may result in sanctions as stipulated under Law No. 27,739.

The Resolution establishes five categories of activities that PSAVs must declare upon registration, dictating specific obligations applicable to each category. It is emphasized that natural persons are limited to engaging in activities falling under Categories 1 and 2. Furthermore, PSAVs must have robust IT systems in place to ensure customer protection, transparency, efficiency, and reduce systemic risk. These systems must undergo annual audits by qualified professionals to verify security, operations, and compliance with reserve requirements.

PSAVs are required to implement internal procedures for cybersecurity governance, incident detection, and response based on a risk-based approach. Additionally, they must develop and enforce information security and confidentiality policies while appointing a Regulatory Compliance and Internal Control Officer for monitoring regulatory compliance and submitting annual reports.

To ensure transparency and accountability, PSAVs are obligated to submit periodic reports to the CNV detailing client information, transaction volumes, virtual assets traded or custodied, IT systems, and regulatory compliance status. Failure to comply with these obligations may result in sanctions outlined in Capital Markets Law No. 26,831, including fines, disqualifications, and suspensions for up to five years. The CNV also has the authority to block websites or social media accounts and cancel registrations for illicit activities.

In conclusion, the new resolution brings much-needed regulation and oversight to the rapidly evolving virtual asset landscape in Argentina. By implementing stringent requirements for registration, operational standards, cybersecurity, compliance, and reporting, the CNV aims to protect investors, ensure market integrity, and foster a more transparent and secure environment for virtual asset services providers operating in the country.