Argentine Government Bans Cryptocurrency Investors From Buying Dollars Bitcoin Settlement News

The Central Bank of Argentina has released a new set of restrictions that worry citizens and businesses that have purchased cryptocurrency to use as a hedge against the currency’s valuation. The bank will only sell dollars at an official rate to individuals and businesses that have not bought cryptocurrencies for at least 90 days prior to the transaction, in an effort to curb the exchange rate rise.

Argentine cryptocurrency users are prohibited from buying dollars on official markets

Advertising

The Argentine government is trying to stop the escalation that the blue dollar exchange rate, the price of the US dollar in the country’s informal markets, has been experiencing in recent weeks. The Central Bank of Argentina has issued a resolution that excludes companies and individuals who have purchased cryptocurrencies from accessing dollars at the official rate.

Advertising

The communication, identified as 7552, states that access to official dollar markets will be open to individuals and businesses who:

Not remitting local currency funds or other local assets (with the exception of foreign currency funds deposited with local financial entities) to any natural or legal person, resident or non-resident, related or not, possibly in exchange sooner or later, directly or indirectly, alone or through a related, subsidiary or parent entity, foreign assets, cryptocurrencies or securities deposited overseas.

These restrictions must be met 90 days before buying dollars on the official market.

Close the loophole and local reactions

According to local sources, the new set of restrictions was intended to close the loophole some organizations use by leveraging change control channels for their own profit, buying cheap dollars at an official rate, and then using them to buy cryptocurrencies to trade them at. a higher rate. The Central Bank of Argentina has also introduced a new restriction that prohibits buyers of these dollars from purchasing any cryptocurrency within 90 days of the transaction, to avoid the situations described.

Reactions from Argentines have been mostly negative, with some questioning the effectiveness of this measure. Agustin Monteverde, economist, criticized the logic of this measure. He stated:

The measure is arbitrary and discretionary. It is unclear why wanting to buy a certain commodity (because that is what cryptocurrencies are) cannot enter the forex market.

The measure began to be applied last July 22 and Argentines are already trying to migrate from traditional exchanges, which need to report on cryptographic transactions, to peer-to-peer exchanges, where transactions can be private between two parties.

What do you think of the new restrictions that the Argentine government has imposed on cryptocurrency investors? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as being late in the game, entering the cryptosphere when the price hike occurred in December 2017. Having a background in computer engineering, living in Venezuela and influenced by the cryptocurrency boom on social media, he offers a different point of view. . on the success of cryptocurrencies and how it helps the unbanked and underserved.

image credit: Shutterstock, Pixabay, Wiki Commons

Leave a Comment