The National Securities Watchdog, the CNV, has adopted a resolution in which the existing token reasons regime was expanded with the digitization of national and foreign shares in Argentina, whereby the official use of technology was registered in Latin -America.
Argentina implements tokenization to include shares in a new securities regime
Different countries rush to include digital assets in their financial systems as a way to modernize and simplify activities for their users. On Wednesday, the Securities Watchdog Institution in Argentina, the CNV, adopted a new resolution that opens a new chapter in the implementation of decentralized technology in securities trade.
General resolution 1081 notes that national and foreign shares, in addition to other effects such as financial trusts and shares in closed investment funds, can now be issued with the help of decentralized technologies such as tokens, according to the framework that was subject to the public discussion in April.
According to the new rules network, these assets can now be issued, liquidated and traded using decentralized platforms such as blockchain, which obtains legal recognition from public and private institutions.
According to the resolution, the tokenization of shares will not include new issues, but will be implemented as an additional representation of existing assets. Virtual Asset Service Providers (VASPs) will act as deposars of these effects, function as trading centers and anti-money laundry practices (AML) implement complementary measures.
Finally, the resolution determines that this functionality will be part of a regulatory sandbox that will be extended until August 21. This termination date can change, depending on the observed results.
Roberto E. Silva, president of the CNV, emphasized the relevance of this groundbreaking movement and stated that they were “proud to present the second part of the token risks, with which we complete an innovative and groundbreaking regime for Argentina and the region.”
Moreover, Silva stated that this new Sandbox Argentina is paramount in the regulations processes in the region and the world, and noted that the institution had worked hard to reach this milestone in the history of the capital market in the country.
Read more: Argentinian securities regulator launches innovative tokenization framework