Skip to main content

Argentinian Government Excludes Crypto Investors From Buying Dollars

Argentinian

The Argentinian Central Bank has issued a new set of restrictions that are affecting citizens and companies that have purchased cryptocurrency to use it as a hedge against currency devaluation. The bank will only sell dollars at an official rate to individuals and companies that have not purchased crypto for at least 90 days prior to the operation, with the objective of curbing the rise in the exchange rate.

Argentinian Crypto Users Excluded From Buying Dollars in Official Markets

The Argentinian government is trying to stop the escalade that the exchange rate of the blue dollar, the price of the U.S. dollar in informal markets in the country, has had since some weeks ago. The Argentinian Central Bank has issued a resolution that excludes companies and individuals that have purchased cryptocurrencies from accessing dollars at the official rate.

The communication, identified with the number 7552, declares that access to the official dollar markets will be open to individuals and companies that:

Have not delivered funds in local currency or other local assets (except funds in foreign currency deposited in local financial entities) to any human or legal person, resident or non-resident, related or not, receiving as prior or subsequent consideration, directly or indirectly, by itself or through a related, controlled or controlling entity, foreign assets, crypto assets or securities deposited abroad.

These restrictions will have to be fulfilled 90 days prior to the purchase of dollars in the official market.

Closing the Loophole and Local Reactions

According to local sources, the new set of restrictions would be directed to close the loophole that some organizations use by leveraging the exchange control channels to benefit themselves, purchasing cheap dollars at an official rate, and then using these to buy cryptocurrencies to exchange them at a higher rate. The Argentinian Central Bank also introduced a new restriction that forbids buyers of these dollars to purchase any cryptocurrency in the 90 days after the operation, to avoid the situations described.

The reactions of the Argentinians were mostly negative, with some questioning the effectiveness of such a measure. Agustin Monteverde, an economist, criticized the logic behind this measure. He stated:

The measure is arbitrary and discretionary. It is not understood why whoever bought a certain merchandise (because that is what cryptos are) cannot access the exchange market.

The measure started being applied last July 22, and Argentinians are already seeking to migrate from traditional exchanges, that have to inform about crypto transactions, to peer-to-peer-based exchanges, where the transactions can be private between two parties.

What do you think about the new restrictions the Argentinian government has imposed on crypto investors? Tell us in the comment section below.



from Bitcoin News https://ift.tt/vpryCdD

Comments

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...

Seven UK Companies Form Cryptocurrency Trade Body

Seven major crypto companies operating in the UK have announced the formation an independent cryptocurrency trade body. The group, Crypto UK, has stated that its principal aim is to “improve industry standards and engage policymakers.” Also Read:   Independent Ratings Agency Alerts Investors About Dangers of Tether Leading Cryptocurrency Companies form Crypto UK Trade Body Seven leading cryptocurrency companies operating the UK have formed an independent trade body tasked with developing self-regulatory standards for the cryptocurrency industry, in addition to “engag[ing] policymakers.” The members of Crypto UK are Coinbase, Etoro, Cex.io, Blockex, Commerceblock, Coinshares, and Cryptocompare – comprising trading platforms, exchanges, asset managers, merchants, comparison websites, and intermediaries from the cryptocurrency sector. “Regulation is Imminent” The Crypto UK chairman and managing director of Etoro, Iqbal Gandham, described the trade body’s mission as “promot[in...

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...