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5.76 Neutral Environment
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Bitcoin began to gain popularity in Argentina in 2014. In June 2017, the volume of Bitcoin transactions in the country increased more than four times over the volume reported in the same period in 2016. One of the main factors contributing to the growth of popularity of cryptocurrencies is the unstable economic situation in the country. Argentina is characterized by a fairly high degree of information technology and telecommunications infrastructure development and follows Uruguay and Chile in the E-Government Development Index among Latin American countries. The volume of Argentina's fintech industry grew by 83% from 2016 to 2018 and reached 110 fintech startups, 6% of which (7 startups) develop payment service solutions using cryptocurrencies.
The growing popularity of cryptocurrencies caused a cautious reaction from the Central Bank of Argentina (Banco Central de la República Argentina), which in May 2014 issued a public warning about the risks of using virtual currencies. In July 2014, the Department of Financial Information (Unidad de Información Financiera, UIF) of the Ministry of Justice and Human Rights (Ministerio de Justicia y Derechos Humanos) of Argentina combating money laundering and terrorism financing released Resolution 300/2014 on virtual currencies. The resolution warned against the risks inherent in the possibility of using virtual currencies for the purposes of money laundering and terrorism financing and obliged a wide range of legal and private persons to inform the UIF about all transactions carried out with virtual currencies.

In December 2017, the National Securities Market Commission (Comisión Nacional de Valores, CNV) published a communique on ICOs. CNV warns potential investors about the risks associated with the instrument. In particular, CNV noted that ICOs were currently not subject to any particular regulation by CNV. However, it also indicated that some ICOs may be subject to control by the CNV, depending on the structure and characteristics of each project.

In Argentina, there is a fairly well-developed system of support for startups, including several accelerators oriented at blockchain and fintech. The blockchain and cryptocurrency-related businesses are developing quite actively in Argentina.

Argentina is included into international discussion on cryptocurrencies regulation. A meeting of finance ministers and heads of central banks of the G20 countries took place in Buenos Aires in July 2018, where they discussed approaches to the regulation of crypto-assets.
Neutral Political Environment
6.0 points
Argentina boasts rather enabling political environment for the development of blockchain and cryptocurrencies. There are several government initiatives to implement blockchain-backed solutions in public administration. At the same time, the government, the central bank, and the parliament voice no clear positions on the subject. Government agencies maintain communication with public blockchain associations.
Rather not Enabling Legal Environment
3.92 points
Regulatory Convergence
In Argentina, there is no comprehensive legislation specifically designed to regulate relations in the domain of blockchain and cryptocurrencies. The competence of the authorities in regulating these relations is not clearly defined. Regulators generally apply legislation by analogy to cryptocurrency and blockchain-related issues. At the same time, the approaches of various subjects contain no contradictions.

Definiteness of Legal Regulation
In a general sense, the legal relations associated with the use of blockchain and cryptocurrencies are regulated by the Civil and Commercial Code of Argentina (Código Civil y Comercial de la Nación). The regulation is carried out by analogy with similar legal relations and takes no specific features of blockchain projects into account. A part of legal relations falls outside regulation, especially the issues of cryptocurrency mining, the activities of exchange platforms, payments in cryptocurrencies, and smart contracts. The only normative act to directly provide the definition of cryptocurrencies is Resolution 300/2014 "Prevencion del Lavado de Activos y de la Financiacion del Terrorismo. Monedas Virtuales. Modificacion Resolucion No. 70/2011" of the Financial Information Division (Unidad de Información Financiera, UIF) of the Ministry of Justice and Human Rights (Ministerio de Justicia y Derechos Humanos) of Argentina. In December 2017, amendments were made to the tax legislation of Argentina which classify the income received by individuals or legal entities from operations with cryptocurrencies ("monedas digitales") as the income received from operations with stocks and other securities. In December 2017, the National Securities Commission (Comision Nacional de Valores) published a warning to potential investors on ICOs. The National Securities Commission emphasizes, that the ICOs are not subject to specific regulation, but some ICOs may fall under securities regulation, depending on their peculiarities and structure.

Stability of Legal Regulation
There are no remarkable legislative initiatives to change the existing regulatory practice in Argentina at the moment.

Adequacy of Legal Regulation
The regulation in Argentina is generally rather neutral about cryptocurrency operations and the development of blockchain projects. However, a number of issues remain unresolved (mining, smart contracts, exchange platforms, etc.). There are no special state bodies providing guidance on the implementation of blockchain and cryptocurrency-related businesses, but in the case of ICO projects, the CNV suggests seeking advice from the Investor Service Office.
Situation with the Rule of Law
Argentina has medium indicators of the rule of law, ranking 46th in the world among 113 countries. The conditions of the legal regulation of blockchain and cryptocurrencies are neutral, and since the values of the sub-criterion of the rule of law are medium (0.58), the amount of the difference between weighted (multiplied by Rule of Law Index score) and unweighted assessments are rather significant. This indicates medium risks associated with the general conditions of compliance with legal safeguards in Argentina.
Rather Enabling Infrastructure Environment
7.37 points
There is a developed E-Government, telecommunications, and online services infrastructure in Argentina. Argentina ranks 43rd among 193 countries in the UN Global E-Government Development Index.

At the same time, Argentina has rather low score of doing business conditions, ranking 117th in the world.