Cryptocurrency exchange Bybit has received registration as a virtual asset service provider (VASP) and card operator from Argentina’s Financial Information Unit (FIU).
Bybit establishes in Argentina
In March, VASP registration was introduced in Argentina via legislation aimed at bringing the country into better conformity with the Anti-Money Laundering and Combatting the Financing of Terrorism requirements of the Financial Action Task Force (FATF). The FIU, which registered Bybit, is in charge of analyzing, processing, and transmitting financial intelligence information to prevent money laundering and terrorist financing.
Exit from other countries
Dubai-based Bybit, the second-largest crypto exchange by volume, began operating in Argentina in June 2022 and introduced the Bybit Card in July. The Bybit Card works like a debit card, allowing users to withdraw from their Bybit accounts to pay in fiat currency. Bybit Co-founder and CEO Ben Zhou said in an announcement of the company’s Argentina registration that Bybit takes compliance seriously: "This achievement marks a significant step forward in our mission to provide accessible and secure digital asset services to users worldwide and our commitment against financial crime." Bybit halted operations in France at the beginning of the month and withdrew from Canada in May 2023 after the introduction of new regulations.
Argentina tightens control
The use of cryptocurrency in Argentina has surged due to economic instability in the country. According to Chainalysis, Argentina ranked 15th in the world for crypto adoption in 2023. Argentina has been under pressure from the FATF to regulate its crypto market. In July, legislation was passed to provide tax amnesty up to $100,000, including on registered crypto assets. A similar proposal to legalize crypto holdings was proposed in December but dropped in January. Also, in July, the General Inspectorate of Justice approved the use of cryptocurrency in registered capital.
Receiving VASP and card operator registrations from FIU Argentina is a significant step for Bybit, showing the company's serious intentions to strengthen its presence in the Latin American market.
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