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Argentina securities regulator approves Bitcoin futures index

Argentina securities regulator approves Bitcoin futures index

The National Commission of Value (CNV), Argentina’s securities regulator, has given its approval for the launch of a Bitcoin-based futures index on the Matba Rofex exchange. Trading of the Bitcoin (BTC) futures contract is scheduled to begin in May, and the exchange has claimed that it will be the first regulated Bitcoin futures index in Latin America.

The Bitcoin futures index has been approved as part of Argentina’s strategic innovation agenda, which aims to create a space for collaboration between public and private entities for developing new products in the capital market. The Bitcoin futures contract will be based on the price of BTC provided by various trading pairs offering BTC/ARS. Trades will be settled in the national fiat currency, with traders required to deposit Argentine pesos via bank transfer.

To provide and use payment services in Argentina, any exchange offering these contracts must have a valid contract with a payment services provider registered with the Central Bank of the Argentine Republic.

The regulated Bitcoin futures index would offer qualified investors a safe way to gain BTC exposure in a transparent and regulated environment. The CNV has also requested the Matba Rofex exchange to incorporate alerts that warn investors of the risks associated with such financial instruments.

Argentina has seen high inflation rates and many citizens have turned to Bitcoin to mitigate their effects, resulting in a surge in peer-to-peer Bitcoin trading volume. A recent bill proposed by the Ministry of Economy encouraged citizens to declare their crypto holdings and incentivized them with tax benefits. The launch of the Bitcoin futures contract also comes just a week after Binance announced its expansion to Argentina.

P2P Bitcoin trading volume. Source: CoinDance
Crypto penetration in Argentina. Source: Canva