Argentina’s securities regulator, the National Commission of Value (CNV), has given its approval to a Bitcoin-based futures index that will debut on the Matba Rofex exchange.
Set to launch in May, the exchange claims it will be the first regulated Bitcoin futures index in Latin America.
The CNV approved the Bitcoin futures index as part of a strategic innovation agenda aimed at creating a public-private collaboration space to develop new and creative products in the capital market.
The Bitcoin futures contract will be based on the price of BTC provided by various entities in the country that offer BTC/ARS trading pairs.
All trades will be settled in the national fiat currency, with traders required to deposit Argentine pesos through bank transfer.
For an exchange to provide these contracts and payment services in the nation, it must ensure that it has a valid contract with a payment services provider registered with the Central Bank of the Argentine Republic.
The regulated Bitcoin futures index would provide qualified investors with a safe way to gain BTC exposure in a transparent and regulated environment.
At the same time, the CNV has asked the Matba Rofex exchange to include alerts that warn investors of the risks associated with such financial instruments.
Argentina is currently grappling with high inflation, and many citizens have turned to Bitcoin to mitigate the effects. The country’s peer-to-peer Bitcoin trading volume has hit new highs amid soaring inflation.
The Ministry of Economy recently proposed a bill that encouraged citizens to declare their crypto holdings and incentivized them with tax benefits.
Argentina has taken a pro-crypto stance, with crypto adoption nearly double that of its neighboring countries.
The launch of the Bitcoin futures contract comes just a week after Binance announced its expansion to Argentina.
Binance CEO Changpeng Zhao shared the news of the latest approval. The regulated Bitcoin futures index will provide investors with a regulated and safe way to gain exposure to Bitcoin in the country, further cementing Argentina’s position as a pro-crypto nation.
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