CNV, the National Securities Watchdog, passed a resolution expanding its existing tokenization regime, pioneering the official use of Latin American technology, including the digitalization of Argentine national and foreign stocks.
Argentina will implement tokenization to include stocks in its new securities scheme
Some countries are rushing to incorporate digital assets into their financial systems as a way to modernize and simplify user operations. On Wednesday, CNV, Argentine's Securities Watchdog Agency, passed a new resolution opening a new chapter on the implementation of diversified technologies in securities trading.
General Resolution 1081 establishes that decentralized technology can be issued using decentralized technology as tokens, along with other securities such as financial trust and stocks, along with other securities from closed-end mutual funds, in accordance with the framework subject to the public debate in April.
According to the new ruleset, these assets will be made available to issue, liquidate and trade using decentralized platforms such as blockchain, ensuring legal awareness from public and private institutions.
According to the resolution, the tokenization of shares does not include new issuances, but will be implemented as an additional representation of existing assets. Virtual Asset Service Providers (VASPs) act as depository institutions for these securities, as trading centres, and implement Money Laundering Anti-Money Laundering (AML) compliance measurements.
Finally, the resolution establishes that this feature will become part of the regulatory sandbox, which will be extended until August 21st. This end date may vary depending on the observed results.
CNV president Roberto E. Silva highlighted the relevance of this pioneering move, saying that he “is proud to present a second part of tokenization regulations and will complete an innovative and pioneering regime in Argentina and the region.”
Additionally, Silva said the new sandbox puts Argentina at the forefront of regional and global regulatory processes, and that the institution worked hard to reach this milestone in the history of the country's capital markets.
Read more: Argentine Securities Regulator launches an innovative tokenization framework