As Argentina’s government seeks to address the inherent risks associated with digital assets, crypto proponents have teamed up to oppose existing crypto regulation.
Addressing the Latin American Bitcoin & Blockchain Conference (LABITCONF ) at Bueno Aires, Ricardo Mihura, the president of Bitcoin Argentina, a not-for-profit organization, presented a draft bill stating the significance of supporting decentralization and building resilient public trust.
Bitcoin Argentina Opposes Government Anti-Crypto Move
The bill opposed the existing regulatory perspective that crypto assets require proper regulation. In his intriguing report, Mr. Mihura underlined the need to take action against the bad players looming in the crypto industry.
Based on the recent turn of events, the executive noted that despite efforts to support the blockchain network’s growth, bad actors have painted a negative outlook on the crypto sector. Mihura admitted that he has always been at the forefront of resisting the government’s attempts to regulate the crypto industry.
Despite his antagonist outlook on crypto regulation, Mihura and the Bitcoin Argentina team developed a unique approach to convince the government of the importance of maintaining decentralization. The executive admitted that despite having previous backlash from the Argentine authority, Mihura plans to confront the government positively.
Argentina Imposing Stringent Rules on Crypto Assets
This time, Mihura assured the Bitcoin Argentina team that he would positively respond on matters concerning crypto regulation. He plans to explain to the Argentine authority the importance of protecting savings and public trust.
With the changes in the financial landscape, Mihura regretted that bad actors had shifted to the crypto industry. He regretted that he could not withstand dishonest entities and individuals engaging in unlawful activities.
Based on the shortcomings in the crypto sector, Mihura, and the Bitcoin Argentina team formulated a draft bill seeking to separate the crypto firms from other service providers. The proposed division of crypto firms and service providers is grouped into three main categories: decentralized and centralized, globally centralized, and willing to dialogue with the government.
According to Mihura, entities classified under a centralized category can operate without restriction. However, the customers seeking centralized services will be offered “judicial protection” and legal rights to claim damages if the company falls into bankruptcy.
Benefits of Decentralization
The new legislation bars the Argentine judiciary from settling disputes related to the collapse of decentralized platforms. This implies that after a customer files a lawsuit against a crypto firm, the court must assess whether the defendant’s operations were centralized or decentralized.
Reflecting on the anti-crypto moves in some countries, the President of Bitcoin Argentina opposed the idea behind the outright ban on crypto assets. He believes that the restriction on crypto purchases will fail to materialize, citing the decentralized nature of blockchain.