Proof-of-solvency requirements to be included in Argentine crypto regulation considering running
The government of Argentina is preparing to implement stricter regulations that will aim to bind crypto companies within the rules for operating in the country and at the same time set the companies within the rules. If we take a Bloomberg report, we get that the national securities regulator is introducing proof-of-solvency requirements for entities handling cryptocurrency deposits for third parties.
According to the statements of Sebastian Negri, President of the CNV, the regulation currently being worked out will certainly focus more on the activity of the exchange and with it less on the classification of cryptocurrencies and tokens. The President also stated that this regulatory framework would be implemented in a progressive manner but did not confirm the inclusion of proof of solvency requirements and did not talk about the inclusion of the requirement. Negri clarifies that all measures will be taken in joint effort with crypto companies in Argentina and in this sequence he announces that
Negri clarified that all measures will be taken in a joint effort with crypto companies in Argentina. He also said that we will also set up a working group with the industry to agree on the latest regulatory parameters that would include companies that meet the asset and solvency requirements to support the risk assumed by them and works with them. A Proof of Solvency Report registers whether an exchange or crypto company has the amounts of cryptocurrency it claims to hold, while directly tracking its funds in the blockchain to certify that the company has the ability to cover liabilities presented to its customers. Perfectly enough for.
The upcoming Argentine crypto law aims to include similar measures to protect cryptocurrencies from bankruptcy-like situations that have already happened with the largest cryptocurrency exchanges, which did so last year and led to His image being tarnished and he lost his reach to his customers. We have seen many bankruptcy cases after this incident and we are also seeing them. This is the case for Binance, Crypto.com and Kucoin, which were preparing for the proof-of-reserve process while Mazar, the firm responsible for these certificates, abandoned such a venture in December and shows how It will “stop its work with all its crypto customers globally”. Some national exchanges like Lemon Cash have already said that this information will be introduced in the coming days and Francisco Ladino, Blockchain Manager of Lemon Cash, says that the community has lost their trust in the cryptocurrency and that is why we need to get it back. Will happen and the community will have to explain important things about crypto currency, with the help of which we and others can stand.
