Quick Answer
Yes, cryptocurrency is legal to use and hold in Argentina.
- It is not legal tender but can be used in legally binding contracts.
- Crypto service providers must register with the government to operate legally.
Legal Status of Crypto in Argentina
Cryptocurrency is legal in Argentina, though it occupies a unique regulatory space rather than being recognized as official legal tender. This status exists because while only the Central Bank can issue national currency, the government has acknowledged crypto's legitimacy for use in private agreements. The country has recently moved from a legal gray area to a regulated environment, requiring crypto firms to register as Virtual Asset Service Providers (VASPs) with the National Securities Commission (CNV). Furthermore, these providers must adhere to strict anti-money laundering (AML) and counter-terrorism financing (CTF) compliance rules overseen by the Financial Information Unit (UIF).
Current Regulations
Argentina's regulatory landscape for cryptocurrency was significantly updated in March 2024 with the passage of Law N°27,739. This legislation established a formal framework, appointing the National Securities Commission (CNV) as the primary regulator and creating a mandatory registry for Virtual Asset Service Providers (VASPs). Consequently, any business offering crypto-related services must now register with the CNV to operate legally, a requirement recently met by major exchanges like Coinbase. In addition to this registration, profits from digital currency sales are subject to income tax, and all VASPs must comply with strict anti-money laundering (AML) reporting obligations to align with global standards.
Regulatory Authorities
Several key governmental bodies in Argentina share the responsibility of regulating and enforcing rules for the cryptocurrency market.
- National Securities Commission (Comisión Nacional de Valores, CNV): As the primary regulator, the CNV manages the mandatory registry for all Virtual Asset Service Providers (VASPs). It is also tasked with developing a comprehensive framework to oversee the crypto industry and protect investors.
- Financial Information Unit (Unidad de Información Financiera, UIF): This is the country's main anti-money laundering (AML) and counter-terrorism financing (CTF) agency. The UIF sets reporting requirements for crypto transactions and ensures VASPs comply with national AML laws.
- Central Bank of Argentina (Banco Central de la República Argentina, BCRA): The BCRA is the only authority that can issue legal currency and has prohibited traditional financial institutions from offering crypto services. It also issues public warnings regarding the risks of operating with digital assets.
- Argentine Federal Administration of Public Revenue (Administración Federal de Ingresos Públicos, AFIP): As the national tax agency, the AFIP is responsible for enforcing tax obligations on crypto-related activities. It ensures that capital gains from the sale of digital currencies are properly reported and taxed accordingly.
Historical Context
Argentina's crypto regulation evolved from caution to formalization. In 2014, the Central Bank issued risk warnings while the Financial Information Unit (UIF) introduced AML reporting rules. A key shift came in 2017, making crypto profits taxable. Following a pro-crypto political change, Argentina endorsed Bitcoin in contracts in late 2023. The most significant development was Law N°27,739 in March 2024, which created a mandatory registry for Virtual Asset Service Providers (VASPs) under the National Securities Commission (CNV). This legislation moved the sector from a legal gray area to a regulated framework, aiming to enhance stability and user protection in a country with high crypto adoption.
Compliance Requirements for Businesses in Argentina
To operate legally in Argentina, crypto businesses must adhere to a comprehensive compliance framework primarily enforced by the Financial Information Unit (UIF). These rules are designed to prevent illicit activities and align with international standards. Key requirements include:
- Customer Due Diligence (CDD/KYC): Businesses must identify and verify the identity of all customers and their ultimate beneficial owners (UBOs). A risk-based approach is mandatory, requiring enhanced due diligence (EDD) for high-risk clients—which involves collecting additional information on their source of funds and wealth—and allowing for simplified measures in low-risk scenarios.
- Ongoing Monitoring and Screening: Companies are required to continuously monitor customer transactions to detect unusual patterns or red flags. Additionally, all clients must be screened against global sanctions lists and watchlists to prohibit transactions with sanctioned individuals or entities.
- Reporting to the UIF: Several types of reports are mandatory. Suspicious transactions related to terrorism financing must be reported within 48 hours, while those linked to money laundering must be reported within 150 days. Businesses must also submit systematic reports on high-value cash transactions, international transfers, and all cryptocurrency operations on a monthly basis.
- Internal Controls: Firms must establish robust internal compliance programs. This includes appointing a dedicated compliance officer, providing regular employee training on AML/CTF obligations, and developing clear internal policies to prevent and detect illicit activities.
- Record-Keeping: All records related to customer identification, due diligence, and transactions must be securely maintained in electronic format for at least 10 years after the business relationship has ended.
Why this matters for Cross-Border Payments
For businesses facilitating cross-border payments between Argentina and India, these regulations create a double-edged sword. On one hand, aligning with international AML/CTF standards adds a crucial layer of legitimacy and security, making crypto a more viable channel for formal transactions. On the other hand, the stringent compliance demands—such as mandatory VASP registration, rigorous customer due diligence, and continuous transaction monitoring—introduce significant operational friction. These requirements can lead to higher compliance costs and slower processing times, potentially undermining the speed and cost-efficiency advantages that often draw businesses to crypto-based payments in the first place.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides a global payments platform, the “Money Grid,” built on Bitcoin's Lightning Network for instant, low-cost money movement. Its products, Lightspark Connect and Grid Switch, offer two on-ramps. Connect gives businesses native access for instant Bitcoin transfers, handling complex node and liquidity management. Grid Switch lets regulated institutions use domestic real-time payment systems for fiat-to-fiat cross-border transactions. By abstracting away technical complexities and using Bitcoin as a settlement asset, Lightspark addresses the friction of traditional payment rails.
These tools help businesses navigate complex regulatory environments. Grid Switch includes features to support Travel Rule and OFAC screening, while Connect provides audit-ready reporting and flexible custody. This infrastructure doesn't handle compliance for a business but equips regulated institutions with tools to meet their own stringent obligations—like the KYC and AML reporting rules in Argentina—while expanding into new markets.
To learn more about Lightspark's solutions for global payments, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- “AML/CTF Compliance in Argentina.” Arctic Intelligence, Financial Crimes Consulting Pty Ltd, 2025, arctic-intelligence.com/countries/compliance-argentina.
- “Argentina & Cryptocurrency | Blockchain & Cryptocurrency Laws & Regulations.” Freeman Law, freemanlaw.com/cryptocurrency/argentina/.
- Berger, Micaela. “Crypto Regulation in Argentina – 2025: Recent Developments and Tax Challenges.” Kaplan Abogados, 22 May 2025, kaplanabogados.com/crypto-regulation-in-argentina-2025-recent-developments-and-tax-challenges/?lang=en.
- Coinbase. “Coinbase Gains Approval to Launch in Argentina.” Coinbase Blog, 28 Jan. 2025, www.coinbase.com/blog/coinbase-gains-approval-to-launch-in-argentina.
- DLA Piper. “Argentina Initiates Regulation of Cryptoassets.” DLA Piper, 6 June 2024, www.dlapiper.com/insights/publications/blockchain-and-digital-assets-news-and-trends/2024/argentina-initiates-regulation-of-cryptoassets.
- Kaur, Guneet, and Shailey Singh. “An Overview of the Cryptocurrency Regulations in Argentina.” Cointelegraph, 8 Aug. 2025, cointelegraph.com/learn/articles/cryptocurrency-regulations-in-argentina.
- Kereibayev, Oraz. “AML Compliance in Argentina—One of the Most Prominent Countries in Latin America.” The Sumsuber, Sumsub, 5 May 2022, sumsub.com/blog/aml-compliance-in-argentina-guide/.
