Argentina's CNV Updates Regulations to Allow 'Mattress Money' Investment in Crypto and Brokerages

Argentina's Securities and Exchange Commission (CNV) has made a significant change to its regulations, allowing previously undeclared funds, also known as 'mattress money,' to be invested in cryptocurrency exchanges and other types of brokerages. This move is part of the country's efforts to boost investment and capital markets, which have been impacted by years of currency controls, high inflation, and a stifling tax system.

The new rules, established by General Resolution No. 1108, will allow citizens to invest their previously undeclared funds in cash deposits with brokers or Virtual Asset Service Providers (VASPs). Additionally, transactions of virtual assets to and from registered accounts are also included as an investment option. The goal is to channel hidden assets into regulated platforms, supporting anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts.

Economists have welcomed this development, highlighting its potential impact on local capital markets. According to Roberto E. Silva, President of the CNV, 'the inflow of funds and assets into the Argentine financial system is fundamental for the growth of the capital market.' Economy Minister Luis Caputo also emphasized the importance of developing a robust domestic capital market, which will help channel savings towards investment in the real economy.