Preserving Decentralization and Strengthening Public Trust
Bitcoin Argentina, a non-government organization, has presented a draft bill aimed at regulating the cryptocurrency market in a way that preserves decentralization and strengthens public trust. The proposed legal framework was introduced by Bitcoin Argentina's president Ricardo Mihura at LABITCONF 2023 in Buenos Aires. This marks a significant shift for Bitcoin Argentina, which previously opposed regulations. However, the organization now argues that regulation is necessary to hold bad actors accountable and protect the integrity of the blockchain.
Separating Cryptocurrency Platforms into Three Categories
The first article of the proposed bill focuses on categorizing cryptocurrency platforms and service providers into three groups based on their property rights. These categories include decentralized platforms, local centralized or willing to dialogue with authorities, and global centralized platforms. While platforms falling under the two centralized categories would be allowed to operate freely, customers would be granted strong judicial protection, ensuring their right to claim damages in the event of a company's failure. It is important to note that decentralized platforms would not be subject to intervention by Argentina's judiciary.
Decentralization and Global Nature of Blockchain
Bitcoin Argentina's president emphasized that imposing an outright ban on cryptocurrencies would not be effective, given the global nature of blockchain technology. He stated that even the United States cannot effectively prohibit the operation of the unlicensed cryptoeconomy. Instead, the proposed bill aims to provide the best possible legal framework that can offer protection to citizens and prevent fraudulent activities in the cryptocurrency market. The bill holds all those involved in fraudulent schemes accountable, from the direct perpetrators to those profiting from the marketing of fraud.
Context: Argentina's Inflation Crisis
The proposed bill comes at a critical time for Argentina, as the country grapples with an inflation crisis. Over the past year, Argentina has experienced the fourth highest annual inflation rate in the world, reaching 121.7%. The bill's introduction precedes Argentina's upcoming presidential run-off election between Sergio Massa, the country's economy minister, and Javier Milei, an economist turned politician who advocates for abolishing Argentina's central bank and adopting the United States dollar.
