The Argentine Securities and Exchange Commission - Comisión Nacional de Valores (hereinafter, "CNV") issued General Resolution No. 1058/2025 (hereinafter, the "Resolution"), establishing a registration, supervision, and oversight regime applicable to Virtual Asset Service Providers ("PSAVs") operating in Argentina.

A PSAV is defined as any natural or legal person who, as a business activity, engages in the exchange, transfer, custody, or administration of virtual assets, or provides financial services related to their offer or sale, among other activities, pursuant to Article 4 bis of Law No. 25,246.

The key aspects of General Resolution No. 1058/2025 are:

1. Mandatory Registration: Natural or legal persons residing or incorporated in Argentina must register with the CNV’s PSAV Registry prior to commencing operations. Foreign legal entities must also register if they operate in Argentina under certain criteria, such as using ".ar" domains, targeting advertising to Argentine residents, or entering into local commercial agreements, among others.
   The following subjects will not be considered PSAVs: (i) individuals operating on their own behalf; (ii) those receiving virtual assets as payment for goods or services; and (iii) providers of self-custody wallets. Decentralized protocols without an identifiable service provider will also not be considered PSAVs. A decentralized protocol is understood to be an IT system that operates automatically within a distributed network, without the intervention or direct control of any natural or legal person.
   Additionally, foreign entities not registered as PSAVs may sponsor events in Argentina under certain conditions, such as disclosing their non-registration status and refraining from offering services or soliciting investments.
   Entities not registered must refrain from engaging in PSAV activities in Argentina. Noncompliance may result in sanctions under Article 37 of Law No. 27,739.
2. PSAV Categories: The Resolution establishes five categories of activities that must be declared upon registration: (i) exchange between virtual assets and fiat currency; (ii) exchange between different types of virtual assets; (iii) transfer of virtual assets; (iv) custody and/or administration of virtual assets or instruments enabling control over them; and (v) participation and provision of financial services related to the offer and/or sale of virtual assets.
   The categorization is relevant as it determines the specific obligations applicable to each PSAV.
   It is further clarified that natural people may only engage in activities under Categories 1 and 2.
3. IT Systems: PSAVs must have IT systems in place to ensure customer protection, efficiency, transparency, and systemic risk reduction, and must submit technical reports regarding system security, data integrity, and backup procedures
4. Cybersecurity: PSAVs must implement internal procedures for governance, identification, protection, detection, and response to cybersecurity incidents, following a risk-based approach.
5. Information Security and Confidentiality Policies: PSAVs must have internal policies regarding information security, private key custody, and protection of critical infrastructure. In addition, they must ensure that documentation does not disclose sensitive information or directly identify individuals or systems.
6. Annual IT Systems Audits: IT systems must undergo annual audits performed by qualified professionals (national or foreign), covering system operations, security, backup procedures, and proof of reserves.
7. Appointment of Compliance Officer: PSAVs must appoint a Regulatory Compliance and Internal Control Officer responsible for monitoring regulatory compliance and submitting annual reports to CNV.
8. Code of Conduct: PSAVs must develop and make available to their clients a Code of Conduct setting out principles of conduct, customer protection standards, conflict-of-interest policies, fair treatment, and anti-money laundering guidelines.
9. Risk Management: PSAVs must adopt risk management policies, including procedures for identifying, assessing, and mitigating regulatory and operational risks.
10. Periodic Reporting Requirements: PSAVs must periodically submit reports to CNV, including monthly and annual information on clients, transaction volumes, traded or custodied virtual assets, IT systems, and regulatory compliance.
11. Sanctions Regime: Failure to comply with the obligations set forth in the Resolution may result in sanctions provided for in Capital Markets Law No. 26,831, including warnings, fines of up to five times the benefit obtained, disqualifications, and suspensions for up to five years. Additionally, the CNV may request the blocking of websites or social media accounts in case of illicit activities and may cancel PSAVs' registration.