Argentina’s securities regulator, the National Commission of Value (CNV), has approved a Bitcoin-based futures index that will debut on the Matba Rofex exchange in May. The exchange claims it will be the first regulated Bitcoin futures index in Latin America. The Bitcoin futures contract will be based on the price of BTC provided by various entities in the nation offering BTC/ARS trading pairs. All trades will be settled in the national fiat currency, with traders required to deposit Argentine pesos through bank transfer. The regulated Bitcoin futures index would offer qualified investors a safe way to gain BTC exposure in a transparent and regulated environment.
The CNV approved the Bitcoin futures index as part of a strategic innovation agenda launched in Q1 2022. The agenda focuses on creating a space for public-private collaboration to develop new and creative products in the capital market. The launch of the Bitcoin futures contract comes as Argentina is struggling with high inflation, and many citizens have turned to Bitcoin to mitigate the effects. The country’s peer-to-peer Bitcoin trading volume has also hit new highs amid soaring inflation.
A recent bill proposed by the Ministry of Economy encouraged citizens to declare their crypto holdings and incentivized them with tax benefits. Over the years, the South American nation has taken a pro-crypto stance, with crypto adoption nearly double its neighboring countries. The launch of the Bitcoin futures contract also comes just a week after Binance announced its expansion to Argentina. Binance CEO Changpeng Zhao shared the news of the latest approval.
The Bitcoin futures contract will be settled in Argentine pesos, and traders will be required to deposit their pesos through bank transfer. For the provision and use of payment services in the nation, an exchange providing these contracts must ensure it has a valid contract with a payment services provider registered with the Central Bank of the Argentine Republic. The CNV has also asked the Matba Rofex exchange to incorporate alerts that warn investors of the risks associated with such financial instruments.
The regulated Bitcoin futures index is a significant development for the Latin American market, as it offers qualified investors a safe way to gain BTC exposure in a transparent and regulated environment. The launch of the Bitcoin futures contract is part of a broader trend of increasing crypto adoption in Argentina, which has taken a pro-crypto stance over the years. With the country struggling with high inflation, many citizens have turned to Bitcoin to mitigate the effects. The launch of the Bitcoin futures contract comes just a week after Binance announced its expansion to Argentina, indicating growing interest in the crypto market in the country.
Overall, the launch of the Bitcoin futures contract is a positive development for the Latin American market, as it offers investors a new way to gain exposure to BTC in a regulated environment. The CNV’s approval of the Bitcoin futures index is a sign of the country’s growing interest in the crypto market, and it is likely that we will see more developments in this area in the coming months and years.