Argentina recently introduced the Virtual Asset Service Providers (VASP) Registry which disappointed Bitcoin enthusiasts expecting a similar approach to El Salvador's adoption of Bitcoin. The new law mandates registration for individuals and platforms involved in cryptocurrency buying, selling, sending, or trading. Despite being considered a remnant of the prior government, the move under President Javier Milei was disheartening for those hoping for a Bitcoin-friendly leader in Latin America.

Max Keiser, a prominent Bitcoin supporter and advisor to El Salvador's President Nayib Bukele, voiced his disappointment on social media. Keiser criticized Milei for not grasping Bitcoin adequately and anticipated repercussions for this decision. El Salvador, led by Bukele, made history by becoming the first country to adopt Bitcoin as its official currency in 2021.

The impact of the new regulation was swift. Strike app users revealed that the platform would no longer support the Global Send feature between Argentina and the US. Milei, a libertarian who once touted Bitcoin as a hedge against central banking and inflation, assumed office in December 2023 amidst triple-digit inflation rates. Despite this, he has seen some success in reducing the government's size and operations, achieving the first monthly budget surplus in over a decade. Furthermore, Argentina's monthly inflation rate dropped from 20.6% in January and 25.5% the month before to 13.2% in February.

*Please note that this is not financial advice.