Argentina’s Distinctive Approach and the Unfolding DeFi vs. TradFI Dynamics

In a noteworthy shift from their historical stance against regulation,
the non-government organization “Bitcoin Argentina” has
presented a draft bill proposing a novel strategy to regulate the
cryptocurrency market. The proposal stands out for its emphasis on maintaining
the core principles of blockchain while addressing concerns related to
malicious actors in the industry.

Key Features of the Proposed Legislative Framework:

1. Classification
   of Cryptocurrency Platforms:

• The proposed
  bill suggests categorizing cryptocurrency platforms into three distinct
  groups—decentralized, locally centralized or open to dialogue with
  authorities, and globally centralized.
• Platforms
  falling under the centralized categories would be granted the freedom to
  operate, with customers benefiting from robust judicial protection in
  case of any untoward incidents.

• Customers of
  centralized platforms would possess the right to claim damages in the
  event of a company’s failure, ensuring a safety net for investors.
• The
  legislative framework aims to provide the broadest possible protection
  for users while allowing centralized platforms to operate under clearly
  defined conditions.

• The bill
  explicitly states that Argentina’s judiciary will refrain from
  intervening in failures from decentralized platforms.
• Courts will
  play a pivotal role in determining the decentralization status when
  resolving claims brought forth by allegedly affected customers,
  introducing a nuanced approach to legal proceedings.

Argentina’s Global Perspective on Blockchain

Ricardo Mihura, President of Bitcoin Argentina, underscored that an
outright ban on cryptocurrencies would prove futile, given the global nature of
blockchain. He highlighted that even powerful nations like the United States
face challenges in prohibiting unlicensed cryptoeconomic activities. In this
context, Bitcoin Argentina’s proposal aims to provide the most robust legal
framework for citizens rather than advocating for a top-down ban.

The proposed bill not only holds those directly responsible for
fraudulent activities accountable but extends responsibility to all entities in
the marketing chain until the final victim.

The Emerging Clash Between DeFi and TradFI

As the global financial landscape undergoes a transformative shift with
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