The Government of Argentina Has Excluded Crypto Investors From Buying And Selling Dollar
On Jul 26, 2022
In a surprising turn of events, the government of Argentina announced that it will be excluding its crypto investors from purchasing dollars. This move is seen as an attempt to stem the flow of capital flight which has been plaguing the country in recent years. Ex-President Mauricio Macri commented on the ban, saying that it was necessary in order to “protect Argentinians.” While some see this as a positive step, many in the crypto community are criticizing the decision, citing freedom of trade as a basic human right.
The Central bank of Argentina has announced that it will only sell dollars at the official rate to individuals and companies that have not purchased crypto for at least 90 days prior to the operation. The decision comes amid concerns that Argentines are increasingly turning to cryptocurrencies as a way to hedge against the country’s inflationary economy. While the Argentinian peso has stabilized in recent months, it remains one of the world’s most volatile currencies, and many citizens remain skeptical of the government’s ability to manage the economy.
These restrictions are affecting citizens and companies that have purchased cryptocurrency to use it as a hedge against currency devaluation. The new restrictions include a limit on the amount of cryptocurrency that can be purchased per person. These restrictions are likely to have a significant impact on the Argentine crypto market, which has been one of the fastest-growing in the world. While some analysts believe that the new measures will help to prevent further devaluation of the Argentine peso.
The new regulations will be directed to close the loop-hole that some organizations use by leveraging the exchange control channels to benefit themselves. These organizations have been purchasing cheap dollars at the official exchange rate and then using these to buy cryptocurrencies, which they can then exchange for a higher rate. The sources said that the Central Bank’s current regulations do not allow for such activities and that the new set of restrictions would be aimed at preventing organizations from exploiting the system. The sources added that the Central Bank is expected to announce the new measures soon.
Agustin Monteverde, an economist, has criticized the Argentine government’s recent decision. He argues that the measure is “arbitrary and discretionary”, and that it makes no sense to prevent people from buying and selling cryptos. Monteverde’s remarks come as many Argentinians are expressing negative reactions to the government’s decision. However, it remains to be seen whether the ban will be successful in curbing the crypto trade or not. Already, there are reports of Argentinians using VPNs to access foreign exchanges. Clearly, the Argentine government has its work cut out for it if it wants to effectively clamp down on cryptocurrency trading.
Argentinian investors are already migrating from traditional exchanges, that have to inform about crypto transactions, to where the transactions can be private between two parties. The new regulations put in place by the Argentine government requiring exchanges to report all crypto transactions have caused many users to seek out alternative methods of exchange.
No one knows whether this decision will work or not but time will let everyone know about the outcomes.