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Argentine MP seeks to create bitcoin exchange with state participation

Key facts:

The platform would also be used to store cryptocurrencies, pay taxes, and request loans.

If the cryptocurrencies are withdrawn before 90 days, the user will be fined.

A bill presented by provincial deputy Roque Gervasoni, from Misiones, Argentina, seeks create in that province a bitcoin and cryptocurrency exchange. This market will be “decentralized with majority state participation in the form of a public limited company.”

If this law is approved, the platform will also serve to guard the cryptocurrencies of its users, with which taxes, goods and services may be paid. In addition, “registered persons will be able to access crypto asset loan services that will pay for missionary entrepreneurship,” adds the text of the project.

The deputy, belonging to the Front Renovador de la Concordia Social (FRCS), clarified in the document that Any person living in Argentina can operate on this exchange. In the case of “foreign citizens” who want to participate, they must previously request a permit and accept that the cryptocurrencies acquired or deposited remain blocked on the platform for 90 days.

provisional deputy Argentina BTC

provisional deputy Argentina BTC

Roque Gervasoni considers that regulatory guidelines are necessary for cryptocurrencies. Source: Roque Gervasoni / Facebook

People living in Argentina, on the other hand, they will be able to withdraw their cryptocurrencies before 90 days, but they will suffer penalties for doing it. “Within the first 30 days the fine of 20% of the deposited capital corresponds to him; within the first 60 days, 15% of the deposited capital; and within 90 days, 10% of the deposited capital ”, says the text.

The project does not clarify what would be the competitive advantage of this platform over existing exchanges. These they do not impose any temporary restrictions or fines to withdraw cryptocurrencies. In addition, some of them also grant loans and function as payment gateways for services.

Regulatory guidelines for the use of bitcoin in Argentina

The text presented by Gervasoni, consisting of 11 articles, indicates the fundamentals that drive this proposal. “The invention of cryptocurrencies as a scientific and technological milestone represents one of the most salient events in the digital and traditional economy of recent times”, it is explained there. Because of that, according to the deputy, “legal sciences cannot remain outside of them and it is their duties to analyze and provide their regulatory guidelines.”

An interesting point of this project, which could generate legislative antecedents, is the reference to “the denationalization of money”.

“Theorists affirm that, in a free market economy, where the right to private property prevails, the right that each individual can issue and use the currency they want should also prevail, based on their autonomy, free choice and right to property”.

Fragment of the bill presented by the provincial deputy Roque Gervasoni.

The text of the potential law does not deny this right, although it affirms that its exercise “is not little conflictive”. Even so, it recognizes that “it should not be denied that the use of alternative currencies, particularly digital ones, has built its own place in the market, both in developed and emerging economies.”

This is the 22nd bill presented by Gervasoni in the Chamber of Deputies of Misiones, during 2020. His initiatives during the year addressed various issues. Among them are gender equality education; the regulation of the delivery service; the guarantee of access to housing for people who are part of the “trans community”; and proposal to “regulate female digital dignity.”