Argentine government excludes cryptocurrency investors from buying dollars – Bitcoin News Regulatory

The Argentine Central Bank has issued a new set of restrictions affecting citizens and companies that have bought cryptocurrencies to use as a hedge against currency devaluation. The bank will only sell dollars at the official rate to individuals and companies who have not purchased cryptocurrencies for at least 90 days prior to the transaction, with the aim of limiting the exchange rate appreciation.

Argentine crypto users are excluded from buying dollars on official markets

The Argentine government has been trying to stop the escalation in the exchange rate of the blue dollar, the price of the US dollar in the country’s unofficial markets, for a few weeks. The Central Bank of Argentina has issued a decision that excludes companies and individuals that have purchased cryptocurrencies from accessing the dollar at the official rate.

The call, identified as 7552, announces that access to the official dollar markets will be open to individuals and businesses that:

have not delivered local currency funds or other local assets (excluding foreign currency funds deposited in local financial entities) to any human or legal person, resident or non-resident, related or non-resident, who receives as a 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 the dollar can be purchased on the official market.

Bridging the gap and local interactions

According to local sources, the new set of restrictions will be directed to plug the loophole used by some institutions by taking advantage of exchange control channels to benefit themselves, buying cheap dollars at an official rate, and then using them to buy cryptocurrencies in exchange for them. higher rate. The Argentine Central Bank has also introduced new restrictions that prevent buyers of these dollars from purchasing any cryptocurrency within 90 days after the transaction, to avoid the situations described.

The reactions of the Argentines were mostly negative, with some questioning the effectiveness of such a measure. Economist Agustin Monteverde has criticized the rationale behind this measure. He said:

This procedure is arbitrary and discretionary. It is not understood why no one who has bought a particular commodity (because that is what crypto is) has access to the exchange market.

The measure went into effect last July 22, and Argentines are already seeking to move from traditional exchanges, which have to report crypto transactions, to peer-to-peer exchanges, where transactions can be private between two parties.

What do you think of the new restrictions imposed by the Argentine government on crypto investors? Tell us in the comment section below.

Sergio Goshchenko

Sergio is a crypto journalist based in Venezuela. Describing himself as a latecomer, he got into the crypto world when the price spike occurred during December 2017. Having a background in computer engineering, living in Venezuela, and influenced by the crypto-currency boom on a social level, he offers a different perspective on the success of crypto and how it helps the people who They do not deal with banks and those who suffer from a lack of services.

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