ARGENTINA Law and Practice Contributed by: Santiago J. Mora, Nicolas Garfunkel, Milagros Caneda and May Steward, GPG Advisory Partners
as provided by the IL and SSN rules, mainly set up before the rise of insurtech.
tion of certain processes, execute transnation - al payments, and tokenise and trade financial assets. Research and exercises are currently being car - ried out between financial institutions and pri - vate sector providers. 10.2 Local Regulators’ Approach to Blockchain There is no integral specific regulation regarding blockchain technology in Argentina. However, it is generally understood that the existing regula - tions in the DSL and the CCC regarding digital documents, and electronic and digital signa - tures, are sufficient to allow the use of blockchain technology, although, in practice, this should be reviewed on a case-by-case basis, while there may be in certain cases some pre-existing regu - lation that requires some requirement or process that is incompatible with this technology. Without prejudice to the above, progress in blockchain regulation continues at a steady pace, and the outlook appears favourable. For example, in July 2024, through Decree 640/2024, the Argentine government approved the tokeni - sation of assets by updating the warrant regime governed by Law No 9643. This update allows for the electronic registration and blockchain- based trading of warrants. The decree includes authorisation for the use of electronic signatures to validate warrant transactions on the block - chain and eliminates the requirement for depos - its to be officially registered as depositors and warrant issuers. Moreover, as highlighted in 2.5 Regulatory Sandbox , the Argentine Fintech Chamber, in collaboration with the organisation Crecimiento, submitted a proposal to regulate the tokenisa - tion of RWA through a sandbox initiative, a pro -
9. Regtech 9.1 Regulation of Regtech Providers See 2.2 Regulatory Regime , 2.7 Outsourcing of Regulated Functions and 2.11 Implications of Additional, Non-Financial Services Regula - tions . 9.2 Contractual Terms to Assure Performance and Accuracy Contractual terms regarding the provision of technology services are established on a case- by-case basis from the negotiations of the respective parties, since the outcome of such negotiations will vary on a case-by-case basis according to the negotiating strength of each party in a particular case. Financial services firms try to impose the follow - ing contractual terms on technology providers, among others: • a guarantee for the operation and service; • a guarantee for compliance with all applicable laws; • a guarantee not to affect third-party rights; and • fines for breach of deadlines. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Many traditional players are using (or planning to use) blockchain technology in order to improve the processing, management and storage of information, as well as to automate the execu -
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