Regulatory authorities in Argentina have given approval for the first Bitcoin-based futures contract. The futures contract is already available for trading to qualified investors via the Matba Rofex trading platform.
The approval was given by the Argentine financial markets regulator, the National Securities Commission (CNV). this is the first time the country is giving approval for a product that offers investors exposure to Bitcoin, the number one cryptocurrency in the world.
The futures contract is based on the Bitcoin index listed by the Argentinian securities exchange, Matba Rofex. The platform has already released guidelines for trading the futures contract since Tuesday.
“The measure, which was adopted through a resolution, intends to facilitate adaptation to the regulatory challenges imposed by new technologies in the provision of financial products,” the CNV said in a statement translated from Spanish.
Through the futures contract, investors will acquire exposure to Bitcoin price variations in a secure and transparent manner through derivative products traded under regulated market infrastructures.
CNV’s approval of the product is coming as part of the activities of the innovation hub it launched in 2022.
“The initiative is an achievement of the Innovation Hub launched a year ago by this organization, a space for public-private collaboration aimed at promoting exchange with regulated companies and those entities with service technology projects and/or financial products in the field of the capital market.”
Opening Doors To Bitcoin Adoption
Several countries are yet to embrace the idea of Bitcoin and cryptocurrencies in general. Interestingly, this is all starting to change. Argentina approving the first ever Bitcoin futures contract is a proof of this.
Through this approval, many investors in the country will be more confident to invest in Bitcoin since it offers a secure way to invest. According to CNV, Matba Rofex SA got an approval for trading the futures after meeting strict conditions that ensure investors’ security.
“It must be remembered that the CNV does not have jurisdiction nor does it exercise any supervision or control over these providers. However, it requires Matba Rofex SA to establish as an eligibility condition that 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 their services. payment in the country,” the statement further said.
This is not only progress for Bitcoin, but also other cryptocurrencies. Investors will now be more interested in cryptocurrencies since this go ahead also serves as a greenlight from the government that they can invest in cryptocurrencies.
Going forward, more investors from Argentina can be expected to show interest in crypto. The country has proved before now that it was open to crypto innovation by making crypto legal and taxable.
Other Countries Overtaking the US
The US has been ahead of Argentina in terms of crypto innovation. However, that is about to change as other countries are opening doors to crypto. The US securities and exchange commission after several applications has only approved a Bitcoin futures ETF, but has refused to approve a Bitcoin spot ETF.
At this rate, Argentina may be on its way to overtaking the US by approving a spot Bitcoin ETF which will place it ahead of many other countries in terms of crypto adoption.
The post Argentina Approves First Bitcoin-Based Futures Contract for Trading first appeared on CryptocyNews.com.
from CryptocyNews.com https://www.cryptocynews.com/argentina-approves-first-bitcoin-based-futures-contract-for-trading/
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