Argentina’s Financial Information Unit (FIU) is pushing for tighter controls on Bitcoin trading as the government battles “parallel exchange markets” that threaten the peso.
May 26 2020 | AtoZ Markets – The Argentinean authorities have decided to tighten cryptocurrency circulation in the country in order to stop money laundering and other illegal activities, according to a local news outlet of El Cronista.
Argentina’s regulator orders stricter monitoring of Bitcoin trading
According to reports, the FIU intends to strengthen control over the circulation of virtual assets in the upcoming few months. FIU President Carlos Alberto Cruz claims the watchdog has seen an increase in the volume of operations carried out through virtual assets. Hence, these operations could be carried out by bad actors who intend “to circumvent international standards and avoid the [anti-money laundering] framework,” Cruz added.
As a result, the FIU intends to collect more information about individuals and legal entities involved in the cryptocurrency trade. Moreover, we can expect financial institutions and credit card companies to oblige to report any crypto-related financial activity.
Bitcoin trading spikes in Argentina
Recently, Bitcoin trading surged in Argentina after the country’s central bank banned bitcoin purchases. Argentina is one of the countries with a high volume of Bitcoin trading on the LocalBitcoins.
Why are so many investors in the South American nation turning to BTC? The answer may be the same reason not so many in the United States got on board with cryptocurrency at the start of the COVID-19 pandemic.
Argentina is in dire straits when due to financial crisis and coronavirus global economic impact. As a result, many people worldwide are turning to crypto as a reliable asset uncorrelated with legacy markets. Any measures used to stabilize the Argentine economy can potentially cause deflation of the peso.
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