You need to study the Bitcoin model in El Salvador

The latest edition of the annual Financial Innovation Event brings together leaders in Buenos Aires, regulators, entrepreneurs and cryptocurrency industry. Among the guests was Roberto E. Silva, chairman of the Argentina National Securities Commission.

After converting Bitcoin to fiat currency, representatives from several countries spoke with El Salvador about the sector, including Argentine CNV officials. Therefore, the Cryptootic team asked Silva Learn your country with the Bitconner strategy promoted by Nayib Bukele?

«El Salvador is definitely a model to study. They have been very advanced, have valuable experiences and have a specific committee that is sufficient for the Resource (CNAD), whose supervisor is Juan Carlos Reyes. This is a model worth considering and praise,” Roberto said.

In many countries, there is a lack of clear laws regarding the encryption situation. Creating uncertainty and risk for both sector investors and businesses. This means that cryptocurrency classifications may vary by jurisdiction. Some countries recognize certain digital assets, such as goods and raw materials, while others view them as value, creating regulatory disruptions and disparities.

An example of what is mentioned in Silva is the classification that currently exists between US and European institutions. In North American countries, the Raw Materials Futures Trade Commission (CFTC) classifies Bitcoin as a commodity, similar to raw materials such as gold and oil. This implies a specific regulatory framework focused on futures markets. Meanwhile, the Bag and Securities Commission (SEC) has proposed on certain occasions that some cryptocurrencies may be considered value (securities) depending on the way they are issued and managed, and submit them to the strictest public offering rules.

Meanwhile, the European Union has approved the Crypto Market (MICA) regulations (MICA) in 2023. We aim to unify standards and treat cryptocurrencies as our own categoryalthough it differs from traditional products and values, there are specific regulations depending on the type (such as stubcoins and utility tokens). This difference between jurisdictions illustrates how a lack of global consensus can create disruption for investors and businesses operating in multiple markets.

In this context, CNV experts point out that living things “have no defined position regarding the concept of cryptocurrency.” I’ll point it out «Each case (cryptocurrency project) It needs to be analyzed individually »explains that “classification as a product or value is closely related to the complex regulations that exist in the United States.”

In the case of Argentine CNV, “The key is to determine whether encryption is eligible for value.” If the answer is affirmative, it is within its jurisdiction. However, Roberto explains that this analysis is extremely complicated. This is obvious Argentina is trying to avoid these unstable approaches.

From a digital asset perspective, distanced from the US, El Salvador has gone on a path of clarity in regulations by avoiding strict ambiguity in securities and goods. In 2023, they approved the Digital Securities Act to oversee the market, providing an accessible framework defined for both issues and investors. Along with that proposal, the creation of the National Digital Assets Commission (CNAD) was born.. And from this experience, Argentine CNV is now approaching this model and trying to learn and adapt its standards.

Meanwhile, it is important to emphasize that Silva joined the event with President Pedro Inchaus, the Central Bank of Argentina.

Both the central bank president and the head of CNV were highlighted during the lecture. The importance of collaboration between regulators and the cryptocurrency industry. Inchauspe emphasized that the BCRA remains open to the sector and that instead of imposing regulations without prior notice, a collaborative approach would be required for ecosystem actors.

Silva highlighted the regulatory advances achieved in Resolution 1058 last year, particularly in establishing new parameters for Argentine’s cryptocurrency exchange. He ensured that this standard was the result of a consultation process with the industry, and emphasized the importance of integrating cryptographic actions into traditional financial markets without halting innovation.

Last December, Cryptonotix reported on the signing of an agreement between Argentina and El Salvador. Strengthen regional cooperation in the digital asset industry. Both countries are hoping to create a more positive environment for sector innovation and development while promoting harmonious regulations.