Argentina’s Financial Watchdog Decision on LIBRA Case

Argentina’s financial watchdog, the National Securities Commission (CNV), has decided against intervening in the LIBRA case. Instead, the agency is moving forward with plans for stricter regulation of Virtual Asset Providers (PSAV).

This decision signals a move toward tighter oversight of cryptocurrency operations nationwide. Sources indicate that the CNV, headed by Roberto Silva, is finalizing new, more detailed regulations aimed at ensuring market stability and protecting investors.

New Crypto Rules Target Companies, Says Argentina CNV

CNV stated that the coming regulations will target companies facilitating crypto operations, rather than individual investors. Their reluctance to address the LIBRA issue stems from a lack of legal rules covering token promotions on decentralized platforms.

Related: Argentina’s Crypto President in Trouble: Milei Charged Over LIBRA Token Fail

“The $LIBRA token, at its launch, was not found in mainstream wallets registered as PSAV in Argentina, such as Lemon, and could only be purchased on decentralized platforms or wallets (DEX) operating on the Solana blockchain,” explained sources.

Critics Slam Argentina’s Regulators For ‘Ignoring’ LIBRA Losses

Critics argue that this regulatory gap allows fraudulent schemes to thrive. Nic Puckrin of Coin Bureau criticized regulators for not taking responsibility for the scandal and other pump-and-dump scams, while Ian Balina of Token Metrics questioned the integrity of Argentina’s political-crypto ties.

The LIBRA scandal saw its market cap skyrocket to $4.56 billion before crashing to $257 million, triggering discussions of impeachment and causing an estimated $100 million in investor losses.

Related: Crypto Whale’s $96.87M $LIBRA Gains & $TRUMP’s 5.43% Market Dip: Price Analysis

Investigations revealed payments to Karina Milei, the president’s sister, for favorable decisions, intensifying scrutiny of the government’s inner circle.

Argentine lawyers have now filed a complaint with the DOJ & FBI over LIBRA’s collapse, calling for an investigation into President Milei. While CNV has opted not to intervene directly, growing political and public pressure may soon catalyze regulatory change. This incident underscores the weaknesses in the country’s cryptocurrency oversight.

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