Argentine Securities Regulator Launches Innovative Tokenization Framework
Regulation
Sergio Gosche
Argentine Securities Regulator Launches Innovative Tokenization Framework
The Argentine securities regulator (CNV) stated that this tokenization regime positions Argentina at the forefront of the region. The framework will allow for the tokenization of various assets, including stocks, within a sandbox structure that will be active for an entire year.
Argentine Securities Regulator Launches Innovative Tokenization Framework
Argentine Regulator Debuts Tokenization Regime and Sandbox Structure
Argentina is making strides in its embrace of digitalization and distributed technologies to substitute traditional finance operations. The Argentine securities regulator (CNV) has recently announced the launch of an ample tokenization regime that will allow issuers to use equivalent digital representations of securities and other assets with the acknowledgment of its legality under current law.
The CNV explains that this tokenization regime encompasses “the additional digital representation (total or partial) of shares (including those with double listing), negotiable bonds, shares of closed-end mutual funds, debt securities or participation certificates of financial trusts with a public offering.”
These offerings will be supported by a sandbox structure put in place for a year as the regulator completes a public consultation to address possible defects and complications of these operations during this period.
The framework simplifies the digital issuance of these tokens, explaining that there will be no special authorization for these issuances beyond a generic digitization permit. Registered virtual asset service providers (VASPs) will be responsible for bringing these issuances to the market and being authorized to offer securities under the implemented sandbox.
Roberto Silva, President of the CNV, highlighted the revolutionary aspects of this regime compared to how Argentina’s regional peers have treated the subject. Talking to local media, he stated:
We are a regional beacon. Our goal is to lead in this field and ensure the country has all the latest technology. We can’t be left out of the world’s developments.
Silva added that he expects public consultation to complement the sandbox and make this proposal even better soon. In March, the CNV issued a new framework for the operation of VASPs in the country, introducing new compliance requisites.
Read more: Argentina Strengthens Regulatory Requirements for VASPs
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