The Argentine Senate voted for a law that would create a register that should include any institutions that provide cryptocurrency services to residents of the country.

According to the new document, crypto exchanges and virtual asset service providers (VASPs) will be required to comply with anti-money laundering (AML) measures. For this purpose, a special VASP register must be created, which will be regulated by the National Securities Commission (CNV).

The amendments oblige crypto companies to provide customer personal data and other information to government agencies upon request. This is necessary for more transparent tracking of crypto transactions, the authors assure. The amendments were made in response to recommendations from the Financial Action Task Force (FATF).

Large VASPs will now have the resources to comply from day one, while smaller exchanges and P2P trading platforms may be forced out of the Argentine market.

In January, Argentine authorities announced that they would not require citizens to pay the previously approved 15% tax on undeclared crypto assets worth more than $100,000. At the end of the year, Argentine President Javier Milei proposed legalizing the circulation of crypto assets and using them in payments with the state.