Cryptocurrencies in Argentina are regulated by the bank, according to the CEO of Belo

Key facts:

Regulations in Argentina should be aimed at taking care of the consumer, says Beuadroit.

The Bitso executive believes that DeFi should protect users.

Cryptocurrencies, the regulations and the challenges they represent for companies related to this sector in Latin America, were the subject of debate at the Talent Land Digital 2021 event, on July 7.

In this regard, the CEO of the incipient financial company Belo, Manuel Beaudroit, affirms that in Argentina there is no clear regulation for cryptocurrency exchanges that operate with fiat money, so “the bank is the de facto regulator for DeFi in Argentina.”

With this acronym it refers to the decentralized finance industry, that is, the set of financial products, which has characteristics similar to traditional services, but that have been created on a blockchain.

Talent Land.

For the CEO of Belo, the DeFi is gaining more and more followers in Argentina.

Beaudroit explained that, in his country, regulations change when governments are replaced: “We have had governments that are more pro-innovation and other governments, which, in general, try to control everything much more.”

In the opinion of the executive, in Argentina nobody wants to assume the responsibility of regulating the activity because it has political, legal and bureaucratic implications.

“Until now, each bank decides what its degree of risk is in this regard. Fortunately, in Argentina we have quite innovative banks that have always had an appetite to support this type of company [exchanges]”Beaudroit emphasized.

The CEO believes that the smaller banks are the ones with a “greater appetite for risk” and they are the ones that advance in opening accounts and providing support to the DeFi.

He also stated that the DeFi began to have an impact on how some financial products are handled and that is rapidly permeating the citizenry.

In addition, he reported that in Argentina an alert was activated on the DeFi, with respect to whether or not they function as financial intermediaries. In that sense, Beaudroit said that the position should be “to take care of the consumer, rather than regulating the activity and creating obstacles for the industry.

CriptoNoticias has also reported a recent alert from the Central Bank of Argentina regarding the use of bitcoin and other cryptocurrencies.

Relationship between companies in the cryptocurrency sector

Another participant in the conference was Abraham Cobos, crypto-manager of the Mexican platform Bitso, who addressed the issues of user protection and the relationship between companies in the cryptocurrency sector.

In this regard, Cobos expressed that one of the most important points is how a company seeks to have a relationship with regulators and industry.

“Bitso was the first to obtain a license to operate under the FinTech Law in Mexico and that speaks to how companies seek to be proactive to protect users,” said Cobos.

For Cobos, there are many issues related to cryptocurrencies that can be complicated, so he believes that companies and specialists have an obligation to ensure users are protected.

“I think that the relationship between companies in the cryptocurrency sector is something very relevant, because there are things that are obvious that we must do, although the regulators do not require it, but they are measures we take to protect users,” said the spokesperson for Bitso.

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