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Crypto Leaders in Argentina Want Radical President to Dismiss FATF Travel Rules

Jimmy Aki
Last updated: | 2 min read
Source: AdobeStock

As Javier Milei assumes leadership in Argentina, the cryptocurrency community is already voicing expectations for swift changes in the country’s economic trajectory.

In a publication on December 10 by Cryptonoticias, the Bitcoin community outlined three specific requests directed towards the Javier Milei-led government.

Camilo Jorajuría, Vice President of the NGO Bitcoin Argentina, presented the first set of requests, emphasizing the importance of respecting people’s privacy.

Additionally, he expressed the hope that the new Argentine government would permit individuals to pay for goods and services with any currency accepted by the general populace.

Emphasizing the call for privacy, Jorajuría highlighted Milei’s affiliation with Bitcoin and his reputation as a liberal leader and defender of freedom. He urged Milei to legally support a market that operates outside the “draconian measures of the Financial Action Task Force.”

The Financial Action Task Force (FATF) points to a set of financial standards popularly called the “Travel Rule.”

This rule mandates crypto or virtual asset service providers (VASPs) to record the identities of both the sender and receiver of digital asset funds, even at the expense of their privacy.

Jorajuría also drew attention to the positive steps taken by fellow American nation El Salvador in adopting Bitcoin and establishing itself as a crypto and blockchain hub. He encouraged Milei to consider similar initiatives for Argentina.

The FATF Travel Rule received worldwide attention following the United Kingdom’s enforcement announcement on September 1, 2023.

According to the UK government, the standards are expected to tackle issues around terrorism financing and anti-money laundering (AML) rules.

While it started in the traditional banking sector, the rules are gradually being extended to the crypto space, prompting concerns from industry practitioners who view it as contrary to the fundamental principles of cryptocurrency.

Dissolution of Argentina’s Apex Bank to Put Country on Right Track

While the Vice President of the NGO Bitcoin Argentina focused on the importance of privacy preservation for crypto users, other experts delved into various subjects in the three-point agenda.

Columnist and entrepreneur Adam Dubove is one such expert who urged Milei to proceed with the radical monetary reform programs he outlined during his campaigns.

According to Dubove, if Milei goes ahead with his plans to shut down the Banco Central de la República Argentina (BCRA), it would dramatically open up the market, fostering free currency competition.

Dubove cited examples, noting that the dismantling of the regulatory structure of the BCRA would prompt local crypto firms and commercial banks to offer Argentinians investment options tied to Bitcoin and other crypto assets.

El Salvador’s Mónica Taher further buttressed Dubove’s point, stating that creating a crypto-friendly investment environment would help the long-term economic health of the country.

Taher, who served as part of President Nayib Bukele’s government during its Bitcoin law, explained that creating a favorable crypto climate could lead companies and investors to move investments to Argentina over El Salvador.

Giving his reasons, Taher revealed that Argentina is a much bigger market than El Salvador and boasts several infrastructural advancements.

Argentina is currently facing economic challenges, with inflation exceeding 142% and the poverty rate at a stark 40%.

Pushing towards a crypto berth could see the country pull in much-needed revenue and create jobs for its citizens.