Argentinian Government Bans Crypto Investors From Buying Dollars – Regulating Bitcoin News

Argentina’s central bank has issued a new set of restrictions affecting residents and companies that have bought 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 bought crypto for at least 90 days before the operation, with the aim of mitigating the rate rise.

Argentinian crypto users excluded from buying dollars in official markets

The Argentine government is trying to stop the escalation that the rate of the blue dollar, the price of the US dollar in informal markets in the country, has had since a few weeks ago. The Argentine Central Bank has issued a resolution barring companies and individuals who have purchased cryptocurrencies from accessing dollars at the official exchange rate.

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

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

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

Closing the loophole and local reactions

According to local sources, the new set of restrictions will be aimed at closing the loophole that some organizations use by exploiting the exchange control channels to their advantage, buying cheap dollars at an official rate, and then using these to buy cryptocurrencies to exchange them on a higher rate. The Argentine central bank also introduced a new restriction that prohibits buyers of these dollars from buying any cryptocurrency during the 90 days following the operation, in order to avoid the described situations.

The reactions of the Argentines 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 the person who has bought a certain item (because that is what crypto is) cannot access the stock market.

The measure began to be adopted on July 22, and Argentines are already looking to migrate from traditional exchanges, which must 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 Argentine government has imposed on crypto investors? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as late to the game, he entered the cryptosphere when the price surge occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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