Bitcoiners unveil draft bill to protect blockchain and decentralization in Argentina
Non-governmental organization Bitcoin Argentina has proposed a draft to regulate the cryptocurrency market in a way that preserves decentralization and strengthens public trust.
The proposed legal framework was announced by Bitcoin Argentina President Ricardo Mihura at LABITCONF 2023 in Buenos Aires, Argentina, on November 10, 2020. However, Bitcoin advocates have pushed back, saying that it is important not only to maintain the block, but also to hold bad actors accountable.
“We have always rejected attempts to regulate the crypto-economy, but this time we have set ourselves the goal of responding positively, with only two objectives: maintaining decentralization and preserving savings and public trust.” Mihura added:
“We cannot turn a blind eye to the number of unscrupulous actors and projects spreading with the blockchain brand.”
The first article of the legal framework focuses on classifying cryptocurrency platforms and service providers into three categories to ensure property rights – decentralized, local centralized or willing to negotiate with authorities, and globally centralized.
Platforms that fall under one of the two central categories will be allowed to operate freely, but customers will be given “extensive jurisdictional protection”, which guarantees the right to claim damages in the event of a company's failure.
It is understood that Argentina's judiciary will not intervene in the failure of decentralized platforms.
Courts will decide whether a cryptocurrency platform is sufficiently decentralized when it comes to resolving claims by aggrieved customers.
Related: Argentina's Central Bank Bans Cryptocurrencies From Payment Apps
Mihura stressed that an outright ban on cryptocurrencies – which some governments have tried to do – would not work given the global nature of blockchain.
“Even the United States cannot effectively prohibit the operation of an unlicensed crypto-economy. […] Argentina does not have the option of prohibiting its residents from working in international locations. [so] We believe that it makes no sense to propose a top-down ban and we prefer to propose the best that the law can provide to the citizens.
“This includes all those directly responsible and profiting in the fraudulent transaction chain, right down to the ultimate victim,” Mihura added.
The blockchain Argentina bill comes a week before Argentina's presidential election, led by the country's economy minister Sergio Massa and economist Javier Millay, a politician who wants to dismantle Argentina's central bank and take over the US dollar.
Argentina is currently in the midst of an inflationary crisis. In the last 12 months, the country ranked fourth in the world with inflation at 121.7 percent.
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