On July 18, 2024, the Executive Branch, through National Decree 640/2024 (the “Decree”), approved the tokenization of assets and updated the warrant regime governed by Law 9643 (the “Law”).
Among the changes introduced by the decree are:
– Warrants are allowed to be electronically registered and traded using blockchain technology.
– Warrants, which represent the deposit of merchandise and associated payment obligations, can be used by commodity producers to obtain financing by listing and trading them on blockchain platforms.
– It authorizes the validation of transactions on the blockchain with electronic signatures and the elimination of the requirement that commodity depositories, or “warranties”, be officially registered as such.
– Any entity, including the producers themselves, may hold the assets in custody and issue warrants.
– Virtual asset service providers (“PSAVs”) may perform tokenizations, in Argentina, as long as they are registered with the National Securities Commission (“CNV”).
– PSAV registration is mandatory for those incorporated or resident in Argentina.
– Foreign PSAVs must also register if they meet certain criteria of connection with Argentina, such as operating with “.ar” domains, having commercial agreements that allow the local receipt of funds or assets from Argentine residents, directing their advertising towards Argentine residents, or generating more than 20% of their total turnover in Argentina from activities that require PSAV registration.
– PSAVs operating in Argentina with amounts under US$25,000 are exempted from this requirement.
This decree became effective on July 19, 2024.
