The Financial Information Unit (FIU), a major government agency overseeing economic practices in Argentina, issued a statement to banks, exchange offices, and businesses in general to strengthen controls and provide information related to transactions related to the use of cryptocurrencies by customer exchanges.
According to the Argentine local media, the FIU would do research on how users of digital currencies like Bitcoin, just to adjust its legal framework in connection with money laundering crimes. This measure is due to the significant increase in business volume of these assets at the local level, which they suspect is that many people are trying to bypass financial controls to avoid illegal practices.
The measure is part of the Argentine government’s provisions to combat the growth of the parallel market for currencies like the US dollar. Experts and analysts associate the current panorama with the distrust that the local economy is causing and the controls that the cabinet is carrying out to regulate foreign currency purchases. This is a refuge that many residents resort to because of the devaluation affected by the local currency.
Argentina and controls to regulate operations with Bitcoin
As reported by the agency, the institutions that need to conduct controls and alert legal agencies to suspicious activity include the following:
- Exchange houses.
- Stock trader.
- Investment funds.
- Credit card operator.
- Customs broker.
- Non-governmental organizations (NGOs).
- Specialists in economics.
- Central bank regulated companies.
Along with that FIU He said that he would also collect information from regulators and participants in this market to adjust the applicable rules for this type of case in the coming weeks.
Analysts state that the measure is also based on the recommendations of the FATF, just to prevent cryptocurrencies from becoming a mechanism to sustain illegal financial acts.
Rejection of the measure by the community
After the information had been published and disseminated by various local and international news agencies, the community spoke out on social networks to express their dissatisfaction with the measure.
– eco-ecosystems (@ecoe_pro) May 21, 2020
Not even they will know where to take us. But something is certain
Even their own people will turn around.
They are popularly called La, if not to say THE POOR OF ARGENTINA X10
– David 00 (@ david_sanchez00) May 21, 2020
Many of the comments posted by local residents and enthusiasts mainly highlight how the agency skips out many corruption cases to focus on those who work with digital currencies in the country to defend themselves against economic uncertainties.
On the other hand, they also point out that other governments have taken similar measures in the past, but the very nature of cryptocurrencies has made such efforts unsuccessful. This led to a significant increase in the operating volume via platforms such as LocalBitcoins, where buyers connect with sellers to manage payment mechanisms that adapt to the needs of interested parties.
Economic uncertainty in Argentina
At the moment, the economic outlook for Argentina’s residents in the coming months is very complicated. At the end of April, the local government was late in paying interest on bonds of $ 500 million, which is why it planned to reschedule with private creditors.
In addition to the bankruptcy situation, the local economy is particularly affected by the consequences of the pandemic COVID-19, where many companies have had to shut down while the number of infections is close to 10,000 people.
However, the most shocking thing for the country’s economy has to do with the EU’s actions U.S. Federal Reserve, because printing a substantial amount of money to support the local economy created an excess of coins in circulation that reduced the value of each banknote on the market. This would be particularly detrimental to countries that manage a large portion of their reserves in the United States currency, which is the case in many Latin American countries.
Since the government of former Argentine President Mauricio Macri, many residents of the country have shown interest Bitcoin as a possible safe haven against the difficult economic situation. However, since Alberto Fernández’s arrival, digital currency business has grown exponentially due to concerns about a possible return of Kirshnerism to power with Cristina Fernández de Kirschner as Vice President.
Source: Chronicler / The Bitcoin News / Twitter
Angel Di Matteo’s version / DailyBitcoin