Argentine Officials Assert No Intervention in Dispute Over $LIBRA

In the context of the increasingly strong development of the cryptocurrency market, Argentina is facing a controversy surrounding the $LIBRA token. The situation heated up after President Javier Milei participated in promotional activities, attracting public attention. However, Argentine officials stated that they do not have the authority to intervene in the sale and promotion of this token. Limitations of the Current Legal System The National Securities Commission (CNV) emphasizes that current regulations in Argentina do not yet cover cases related to the promotion of digital assets on distributed platforms such as blockchain. The $LIBRA case began when the token was sold on the Solana blockchain - a system not registered in Argentina - after being promoted on social media pages without going through authorized agents. This creates a loophole in the legal system, leaving regulatory agencies without a clear legal basis for intervention. Supervision Policy and Role of PSAV In an effort to control the development of the cryptocurrency industry, CNV has set tighter targets for Digital Asset Service Providers (PSAV). Although the Argentine government is calling for stricter regulations, in the case of $LIBRA, regulatory authorities assert they do not have the authority to intervene in promotional and sales activities without the participation of registered intermediaries. Sources in the industry indicate that when $LIBRA first appeared, this token was not supported on regular wallets like Lemon - a wallet that has been registered according to PSAV regulations in Argentina. Instead, $LIBRA transactions mainly take place on decentralized exchanges (DEX) and wallets running on the Solana blockchain, which further highlights the difference between managed and unmanaged platforms. Challenges and Future Directions Regulators are cautious about immediate intervention in activities on decentralized platforms because it requires a deep understanding of blockchain technology and decentralized systems. The debate over $LIBRA has revealed gaps in the current legal framework, raising questions about the impact of unregulated activities on the domestic market. To address these shortcomings, CNV has been making efforts to build a registration system for PSAV, aiming to create a safer and more transparent trading environment. Currently, more than 120 companies have registered, marking a significant step in coordinating and managing the cryptocurrency industry in Argentina. This direction promises to bring stability and confidence to both domestic and international investors. The debate over $LIBRA not only reflects current challenges but also opens up opportunities to improve the legal framework for the financial technology industry, thereby creating conditions for a sustainable cryptocurrency market in the future.