Argentina’s securities regulator, the National Commission Of Value (CNV), approved the regulation of Bitcoin
What Happened: The futures contracts allow investors to gain exposure to Bitcoin’s price without having to own the underlying asset. They will be traded and settled in Argentine pesos.
The move is part of the CNV’s strategic innovation agenda, which aims to adapt to the challenges posed by new technologies in the provision of financial products. It also seeks to promote the development of novel and innovative products by regulated entities in the capital market.
The Bitcoin index will be based on the price of Bitcoin provided by different price providers and entities that facilitate the BTC/ARS pair operation. Deposits will be made in Argentine pesos through bank transfers. It is important to note the CNV has no regulatory authority or control over these providers.
Matba Rofex S.A. is required to ensure that they have a valid contract with a Payment Services Provider (PSP) registered with the Central Bank of the Argentine Republic (BCRA) for the provision and use of their payment services in the country.
Qualified investors will be able to access Bitcoin’s price fluctuations safely and transparently through derivatives products traded on regulated market infrastructures. This will create new opportunities for investors to manage risk and diversify their portfolios.
To ensure that investors understand the risks associated with these products, Matba Rofex S.A. will incorporate alerts that warn investors about the risks associated with these operations and possible contingencies in the formation of the instrument.
Why It Matters: This initiative is part of the Innovation Hub launched by the CNV a year ago, which is a public-private collaboration space designed to promote exchanges with regulated companies and entities with technology projects for financial products and services in the capital market.
The CNV’s approval of Bitcoin index futures contracts is a positive development for Argentina’s capital market. It demonstrates the regulator’s willingness to adapt to the changing financial landscape and promote innovative products for regulated entities.
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