Bitcoin Futures Receive Regulatory Approval For Listing In Argentina
As part of its efforts to promote innovation, the Comisión Nacional de Valores (CNV)—Argentina’s national securities commission—has approved the regulation of BTC futures contracts on the Bitcoin Matba Rofex Index, with settlements in Argentine pesos and no requirement for delivery of the underlying asset.
The new investment product will be based on the price of Bitcoin provided by various entities in the country that offer trading pairs between the cryptocurrency and Argentine pesos, the CNV said in a statement.
This resolution aims to adapt to the regulatory challenges posed by new technologies in the provision of financial products and to encourage regulated entities in the capital market to develop new and innovative products.
The Bitcoin Matba Rofex Index will be created using data on the price of Bitcoin provided by various price providers. Users can deposit Argentine pesos through bank transfer from independent banking institutions. Matba Rofex SA is tasked to ensure they have a current contract with a Payment Service Provider (PSP) registered with the Central Bank of the Argentine Republic (BCRA) for the provision and use of payment services in the country.
Qualified investors will be able to access Bitcoin and profit from price fluctuations in a safe and transparent manner through regulated market infrastructures. To address the integrity of the market, the CNV has requested that Matba Rofex SA incorporate alerts for investors warning of the risks associated with this type of contract volatility and potential contingencies.
This initiative is a result of the Innovation Hub launched by the CNV a year ago, which promotes collaboration between public and private entities to encourage the exchange of ideas, particularly for those involved in technology projects and/or financial products in the capital market.
Argentina is the second-largest country in South America by both land area and population, with an estimated population of over 45 million people as of 2021.